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Agricultural Issues Essay

800 words - 4 pages

The U.S. Department of Agriculture allocates billions of dollars in subsidies to agriculturalists (farmers) and farmland proprietors annually. The particular quantity is contingent on market price of the specific crop being farmed or readily available. The regulation of corn is the United States most important feed grain, it accounts for ninety-five percent of one-third of the U.S. agricultural crop. Aspects of the governmental program such as subsidizations are to raise incentive used for agrarian production, regulate food costs, protect and stabilize U.S. domestic agriculturalists (source of revenue) and agricultural industry. According to Business week, “Iowa is known as the Tall Corn State, ethanol plants are near Nevada, Iowa. Ethanol has added $20 billion to Iowa’s economy.” (Matthew, 2013)
The Corn Regulations are restrictions, tariffs, and subsidies, legislated by British Parliament in the nineteenth century to discourage imports and encourage exports of grain (corn). The regulation of corn has contributed to economic growth since the demand for the manufacturing of ethanol stemmed from the increase corn prices in addition provided incentives towards the growth for corn acreage. “Corn has food, feed, and industrial uses. It is a major component of livestock feed. Feed use, a derived demand, is closely related to the number of animals (cattle, hogs, and poultry) that are fed corn. The amount of corn used for feed also depends on the crop's supply and price, the amount of supplemental ingredients used in feed rations, and the supplies and prices of competing ingredients.” (USDA.gov, 2013) Farmers augmented corn acres by acclimatizing yield gyrations between corn and soybeans; this caused a reduction towards planting soybeans. Additional corn plantings sources of land for augmented consist of cropland that were utilized for pasture, reduced unplanted land returning to production from expiring Conservation Reserve Program agreements, as well as shifts from other crops (cotton). The major element of international grain trade is corn along with barley, millet, mixed grains, oats, and rye, and sorghum. Corn accounts for approximately two-third of the capacity in previous decades. The U. S. is world's leading corn producer and presently exports one-fifth of corn and corn byproducts production annually.
The United States has a comparative advantage in generating corn. Based on government agriculture program on the level of comparative advantage generated from corn Farms have subsidies to stimulate other production of government preferred commodities such as corn through inducements toward...

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