The Pros And Cons Of Agricultural Subsidies

Thesis: Agricultural Subsidies are causing more harm than good.

Introduction:

Agricultural Subsidies can be very vague to the common eye. It is seen as aid to the farmers of equity concerns; a protection for infant industries to benefit in the long run; even a weapon used to dominate its international market. However, do these things actually benefit the country itself? Is it moral to do so? Or is it good for our environment?

This research would provide an in-depth explanation of Agricultural subsidies and what it can cause to the industry. It is not what the public perceives it as.

I. Agriculture subsidies

A. Definition of agriculture subsidy

The support of the adoption of new technologies or practices in an agriculture industry; however, once it is proven to be cost effective, subsidies should be removed. Subsidies serve as a short term solution to change specific problems and behaviour of the industry (Clay, 2013).

B. Types of agriculture subsidies

Direct payment, Marketing loans, Counter-cyclical payments, Conservation subsides, Insurance, Disaster aid, and Export subsidies.

Direct payment, marketing loans, and countercyclical payments covers 10 types of crops: wheat, corn, sorghum, barley, oats, cotton, rice, soybeans, minor oilseeds, and peanuts (Edward, 2009). These are forms of agriculture subsidies based in the United States of America.

II. Negative effects of agriculture subsidies

A. Negative effects inside the country

Farm subsidies may redistribute wealth. The money for subsidies are taken from the taxpayers. This then is redistributed to farmers or landowners (Edwards, 2009). These subsidies can also damage the economy. This is when the economics comes in. All markets have their own supply and demand. The s...

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... end. This is because of the need to protect infant industries and prevent monopolies in the industry. Trade barriers are to be set to help infant industries grow. Here the infant industries are the developing countries, but none is done to protect them. The other way around, agricultural subsidies are harming these infant nations from growing. Without all these agricultural subsidies developing nations may only need a small amount of time to catch up to developed nations.

Agricultural subsidies are damaging the industry. Agricultural subsidies do bring benefits but it doesn’t over weigh the loss it brings to the industry. The environment pollution, lack of health awareness, loss of trade, loss of country relationships, loss of potential industry growth, and the poverty it brings to developing countries. These state that agricultural subsidies harm the industry.