Agricultural subsidies are a controversial topic in many areas in this world. Why do agricultural subsidies cause so many arguments? Should government continue the agricultural subsidies? Some people say the agriculture subsidies are wasted. However, proponents of farm subsidies argue that we need the money to guarantee that farmers produce higher quality products with some profits.
How do we define agriculture subsidies? According to Morgan Rose, “Subsidies are payment from a government for which it receives no goods or services in return” ( Rose). We will encode this definition in later this essay.
Let’s see an example. We suppose that due to the weather, the field that plants the corn has been destroyed. Therefore, the price of corn arise to $2.50 or $3.0 a bushel instead $2.0 a bushel last year. Should the government give at least $.50 per bushel to the farms to stable the market and keep the price at s$2.0 a bushel? What will be the subsequence in other industries such as restaurant after the price increases so sharply.
Therefore, questions will come subsequently. Do agricultural subsidies benefit the consumers? Do agricultural subsidies benefit the farmers? Or, do agricultural subsidies benefit the market?
Our argument derives from here.
I, the farm subsidies supporter, think there are many reasons that government should continue pay the farm subsidies. Let’s encode the subsidies’ definition we mentioned above. It pay for in which “it receives no goods or services in return.” In agriculture industry, Bob Young shows that “the target price for corn in 1982 was $2.70 per bushel. Today it is $2.63 per bushel. The wheat target price was $4.05 in 1982. Today it is $3.92” (Young). Do you know anything else confront this significant decline in recent thirty years?
As we know, the technology has been adapted into agricultural industry. That means more cost has been stepped in, such as operating skills and...