How Does Farm Subsidies Affect The Economy

992 Words4 Pages
Like much of the midwest, Indiana is especially dependent on agricultural success to boost their economy. Farming is the backbone of the Hoosier state, with 57,500 farming operations functioning in 2016, per the United States Department of Agriculture. While Indiana relies heavily on the agricultural sector of their economy, the agricultural sector in turn often relies upon subsidization. According to “Food Policy: Looking Forward from the Past”, a book written by Arlene Spark and Janel Obenchain, “An agricultural subsidy is governmental assistance paid to farmers and agribusiness to supplement their income, manage the supply of agricultural commodities, and influence the cost and supply of such commodities.” Now that we accurately…show more content…
The Farm Bill only faced minor changes up until 1996, when a Republican Congress in favor of deregulating the industry redrafted the legislation to allow for more free market engagements. Since then, the debate over deregulating and unsubsidizing farmers has grown immensely. Although farm subsidies all have their roots to one major piece of legislation, there are multiple variations that are common. One of such subsidy programs allows farmers to counter fluctuations in various aspects of their production. If prices for a crop take astounding hikes or fall dramatically, subsidies can provide in time of need. This is the most well-known farm subsidy program, but there are other aspects that get remarkably overlooked. Even insurance coverage, product marketing, research and conservation efforts are subsidized under the current Farm Bill. With the present situation, many Americans believe that the government carries too much control in the agricultural market. For a more detailed breakdown of where the funding in the Farm Bill goes to, see the pie chart below for a reference. These numbers are accurate as of the 2014 Farm Bill, per the National Sustainable Agriculture Coalition. Plenty of benefits have steamed from the implementation of subsidizations in the agriculture industry. First, farmers are receiving a more consistent income than they were before the government’s subsidies were enacted. As stated by Connect Us Fund, subsidies allow

More about How Does Farm Subsidies Affect The Economy

Open Document