Farm subsidies research
A. What is the history of the program ?
During the 1920’s the U.S. was characterized by isolation, meaning they did not care about other countries. They were only concerned with their own prosperity, development, and strict neutrality because of the many wars that were fought during that time. This led to the Americans not signing the Treaty of Versailles, let alone join the League of Nations. During the end of that decade the U.S. was suffering from severe unemployment, leading to global unemployment. This was the time period Franklin Roosevelt found his country and became the new president. On economic behalf he strived to help the oppressed and the miserable citizens. His plan to rebuild the U.S. was called the "New Deal". The first people that were helped by his new measurements were the farmers by introduction of farm subsidies.
B.Who benefits from this program and how ?
The tricky part of farm subsidies is that not every farmer gets one. About 60 percent of farmers, including most fruit and vegetable growers, receive no subsidies at all. The main farmers that benefit from subsidies are the larger farm operations. Meaning that smaller farmers are left to a serious disadvantage in this case. In short, large farm operations benefit, smaller farmers don't.
C.What is the yearly cost to the American taxpayers. What is the historical cost data?
The yearly cost of payments to farm subsidies in 2013 is about $256 billion, this includes indirect payments such as : marketing loans, countercyclical payments, conservation subsidies, insurance, disaster aid, export subsidies, and agricultural research and statistics. The direct payment ( cash subsidies for producers of 10 crops) consists of about $49.7 billion annually.
Total Direct Payments in the United States totaled $49.7 billion from 1995-2012.
Historical cost data
Year Total Direct Payments