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What are the pros of farm subsidies?

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  • Anonymous
    1 decade ago
    Favorite Answer

    We really do not have farm subsidies. We have consumer subsidies to buy votes. The subsidies are used to keep food prices down. Just think the average american earns enough by The first week of February to buy his food for the year. It takes him until late May or early June to earn enough to pay his taxes and that does not count all the hidden taxes that are passed on to him in the products he buys.

  • ?
    Lv 4
    4 years ago

    Farm Subsidies Pros And Cons

  • ?
    Lv 4
    4 years ago

    Agricultural Subsidies Pros And Cons

  • 1 decade ago

    • A subsidized farming industry helps to create the most stable farming infrastructure possible. Agricultural commodities are subject to great swings in price due to weather conditions and market volatility. Without government support to smooth the impact of market fluctuations, huge numbers of American farmers would be pushed into bankruptcy, forced off the land and into dependence on welfare. This would have knock-on effects on the whole economy of the US heartland, and would devastate the social structure of small-town America. Unless the United States is happy to stand by while this happens, we must continue to support farm programmes which guarantee farmers a decent return on their labor and give American agriculture a secure future.

    • For the reasons given above, market prices for agricultural produce can vary greatly from year to year. Without government support to smooth out fluctuations, consumers would sometimes be faced with price spikes when harvests were poor (or because many farmers had been driven out of business, reducing supply). As family income is pretty fixed, price spikes for basic foods such as bread, breakfast cereal, meat, beans, dairy products and even beer could really affect the standard of living enjoyed by many Americans. Even if such high prices only occurred occasionally, their possibility would create general uncertainty about future levels of disposable income. This could be very damaging to consumer confidence, and so to the economy as a whole.

    •Food is a unique good in the sense that it is essential to sustain life. The government should not gamble on this important industry surviving such elements as a fluctuating market-place and environmental change without federal support. Federal agricultural programmes are necessary to promote American self-sufficiency in food stuffs - vital for national security and the well-being of a country’s citizens. During a time when the US is involved in a massive ongoing war against terror, this food security is imperative. Subsidies are also helping us to make progress towards another form of self-sufficiency, as federal support for ethanol production (largely derived from maize grown in the US cornbelt) is contributing to reduced dependence upon imported oil.

    the site has more to i believe

    hope it helps!

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  • oldm8
    Lv 4
    1 decade ago

    It allows unproductive, nonviable,or badly managed farms to continue to operate as a business growing crops that are usually over produced for a global market.

  • Anonymous
    1 decade ago

    some pros are that they encourage farmers to grow subsidized crops, but thats also a con, since it discourages growing of a wide range of crops.

    but it makes those subsidized crops "cheaper"

  • 1 decade ago

    It allows for farmers to stay in business when prices may slump.

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