Farm Subsidies Essay

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Agricultural subsidies is a very complex and controversial economic topic today. It will continue to be a hot topic as government continues it. It is largely debated in the United States as well as in other countries. The reason it is so largely debated is because it literally have an effect on the entire world market. Not to mention that the farm has been booming the last 5 to 10 years. This topic also tends to draw strong opinions in our area in particular due to the large agricultural community in our region. However, even within different states there are many supporters as well as opponents to these government subsidies. To really begin to understand this complex topic a person really needs to understand the basics of…show more content…
In 2002 wheat was $3.80 a bushel so farmer’s received $.06 for the difference in the guaranteed price and $.52 for every bushel of wheat they sold (“Farm bill resources, 2008”). The idea behind the government subsidizing of agriculture is a good idea in theory. However, it is controversial because there are many people who oppose this policy for different reasons. There are many reasons why it is controversial but there are a few in particular that cause the most debate. One reason that people do not support the subsidizing is because of the sheer cost. In 2009, the U.S. government paid over 12 billion dollars to the agricultural sector (Vogel, 2001). When you consider that fact that the payments are being made with taxpayer dollars it explains why some people immediately oppose it. There have been past years where the government has actually paid double that. These payments do consume a fair portion of our governments budget. Although it is not a confirmed fact, a Canadian report said that for every dollar earned by a U.S. farmer, 62 cents comes from some form of government payment (Wikipedia). Basically some people view this as nothing more than transferring income from the general tax payers to farm owners. In fact, farm subsidies is actually the United States’ largest corporate welfare program. People also blame these subsidies for increasing poverty in some
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