Subsidy Programs For Farmers Essay

1076 words - 5 pages

Subsidy programs had been applied near 80 years already, but the fundamental ideas remains the same. Many farming subsidies originated from the Great Depression. Because of the unstable economy conditions, 25 percent of the nation’s farmer resided in the 1930s. Government soon applied a program to encourage people to join farming and minimize the declination numbers of farmers. Subsidies are financial supports from the United State government that helps farmer to remain stable income.

Another reason that we have subsidies for commodity crops like corn and soybeans is to keep crops at low market value. With the support from government, farmers can grow as much as they can at a low cost. In addition, farmers get extra money as a reward for guaranteeing their crops stays at a price level. For example, a farmer got 52 cents reward for guaranteed wheat price stayed at $3.86 per bushel from year 2002 to 2003. If a farmer could lower the price to $3.80, the government would give the farmer 6 cents extra, total of 58 cents. Corn is so important to us because it is not only use in food, but also gas fuel for everyday driving. Billions of gallons of ethanol are mixed into gas fuel each year. Energy Policy Act of 2005 subsided between $ 5.5 billion to 73 billion dollars per year to ensure U.S. corn ethanol demand. Manufacturers could also get a benefit of 51 cents per gallon. While state subsidies and federal crop subsidies to federal subsidies could bring the total to 85 cents per gallon or more, many farmers have join to grow corn. However, the federal ethanol subsidies ended at December 31, 2011

Currently, the government pays around $20 billion each year to farmers. Feed grains and corn mainly occupies the top share of the subsidies, 35.4 percent. It becomes one of the majority federal funding. Corn is the largest crop portion grown in American food system because it has a steadily production with fewer resource. Additionally, many industries are depending on corn utilization, for instance farmers, agricultural-equipment-makers, ranchers, food processors (corn sugar), chemical companies, gasoline, etc. Because commodity crops are basic materials for many products, the government gives funding to ensure their production.

Subsidies affect people in different ways. First, Americans are facing a health crisis. Less farmer prefer to plant fresh fruits and vegetables because they are more expensive. Corn and Soybeans are utilized as raw materials to make cheap processed food like, chips and soda. I don’t think the government should keep the subsidies in place because a peer-reviewed research suggests that U.S. farm policies have a negative impact on human’s health crisis. For example, sugar cane was replaced by corn syrup. Production cost of sugar-made foods was decrease; hence their price was decrease as well. Therefore, more people, especially who are food-insecure and low-income group, want to buy cheaper food. However, many of high sodium and...

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