Agricultural Subsidies: Their Original Purpose and Impact Today Essay

Agricultural Subsidies: Their Original Purpose and Impact Today Contents Introduction: What are Farm Subsidies? 3 Government Intervention in Agribusiness 7 The Reality 9 Works Cited 12 â€Æ' Introduction: What are Farm Subsidies? The Agriculture sector has changed monumentally over the past century in response to vast economic change and technological advancements. Farm subsidies are various forms of payments from the federal government put in place in an effort to stabilize prices, keep farmers in business, and ensure quality of crops. The federal government currently pays $20 billion in cash each year to US farmers and spent an estimated $250 billion between 1995-2005. Presently, a new farm bill is passed every five years with the most recent being in 2013 . Although there are small changes with each preceding Farm Bill the permanent pieces of legislation requiring US Department of Agriculture to control pricing and regulate supplies date back to the 19th century. The Commodity Credit Corporation (CCC) finances subsidies and buys surplus food to regulate and steady farm income. There are presently eights various subsidies: Direct Payments, Countercyclical Payments, Export Subsidies, Conservation Subsidies, Marketing Loans, Agricultural Research and Assistance, Disaster Aid, and Insurance. 1) Direct Payments: 5 billion annually The federal government pays cash subsidies to landowners who produce: wheat, corn, sorghum, barley, oats, cotton, rice, soybean, minor oil seeds and peanuts. This combination of crops are considered to be the top ten crucial commodities. A direct payment is equal to the product of the payment rate for the specific crop, the historical payment acres, and the historical payment yield fo... ...z2yiN9IUsy>. Nathaniel, Jeroime. "Farm Bill 2013: An Inside Look At the Most Important Bill You've Never Heard Of." PolicyMic. Oct. 2013. 13 Apr. 2014 . Peterson, E. Wesley F. A billion dollars a day: The economics and politics of agricultural subsidies. Malden, MA: Wiley-Blackwell, 2009. "U.S. Department of Agriculture." U.S. Department of Agriculture. 11 Apr. 2014 . "U.S. Farmers During the Great Depression." Farm Collector. 13 Apr. 2014 . White, Deborah. "What Are U.S. Farm Subsidies?" About.com US Liberal Politics. 11 Apr. 2014 . Agricultural Subsidies: Their Original Purpose and Impact Today Essay Agricultural Subsidies: Their Original Purpose and Impact Today Contents Introduction: What are Farm Subsidies? 3 Government Intervention in Agribusiness 7 The Reality 9 Works Cited 12 â€Æ' Introduction: What are Farm Subsidies? The Agriculture sector has changed monumentally over the past century in response to vast economic change and technological advancements. Farm subsidies are various forms of payments from the federal government put in place in an effort to stabilize prices, keep farmers in business, and ensure quality of crops. The federal government currently pays $20 billion in cash each year to US farmers and spent an estimated $250 billion between 1995-2005. Presently, a new farm bill is passed every five years with the most recent being in 2013 . Although there are small changes with each preceding Farm Bill the permanent pieces of legislation requiring US Department of Agriculture to control pricing and regulate supplies date back to the 19th century. The Commodity Credit Corporation (CCC) finances subsidies and buys surplus food to regulate and steady farm income. There are presently eights various subsidies: Direct Payments, Countercyclical Payments, Export Subsidies, Conservation Subsidies, Marketing Loans, Agricultural Research and Assistance, Disaster Aid, and Insurance. 1) Direct Payments: 5 billion annually The federal government pays cash subsidies to landowners who produce: wheat, corn, sorghum, barley, oats, cotton, rice, soybean, minor oil seeds and peanuts. This combination of crops are considered to be the top ten crucial commodities. A direct payment is equal to the product of the payment rate for the specific crop, the historical payment acres, and the historical payment yield fo... ...z2yiN9IUsy>. Nathaniel, Jeroime. "Farm Bill 2013: An Inside Look At the Most Important Bill You've Never Heard Of." PolicyMic. Oct. 2013. 13 Apr. 2014 . Peterson, E. Wesley F. A billion dollars a day: The economics and politics of agricultural subsidies. Malden, MA: Wiley-Blackwell, 2009. "U.S. Department of Agriculture." U.S. Department of Agriculture. 11 Apr. 2014 . "U.S. Farmers During the Great Depression." Farm Collector. 13 Apr. 2014 . White, Deborah. "What Are U.S. Farm Subsidies?" About.com US Liberal Politics. 11 Apr. 2014 .