Topic > Subsidy programs for farmers - 937

Subsidy programs have been in place for almost 80 years, but the fundamental ideas remain the same. Many farm subsidies originated from the Great Depression. Due to unstable economic conditions, 25% of the nation's farmers resided there in the 1930s. The government soon implemented a program to encourage people to take up agriculture and minimize the number of declining farmers. Subsidies are financial supports from the U.S. government that help farmers maintain a stable income. Another reason we have subsidies for staple crops like corn and soybeans is to keep crops at a low market value. With government support, farmers can grow as much as possible at low cost. Additionally, farmers receive extra money as a reward for ensuring their crops remain at a price level. For example, a farmer got a 52-cent reward for the guaranteed price of wheat that remained at $3.86 per bushel from 2002 to 2003. If a farmer could lower the price to $3.80, the government would give him 6 cents more, for a total of 58 cents. Corn is so important to us because it is not only used in food, but also as fuel for daily driving. Billions of gallons of ethanol are mixed into fuel gas every year. The Energy Policy Act of 2005 allocated between $5.5 billion and $73 billion annually to meet the demand for corn ethanol in the United States. Producers could also get a benefit of 51 cents a gallon. While state and federal crop subsidies could bring the total to 85 cents per gallon or more, many farmers have banded together to grow corn. However, federal subsidies for ethanol ended on December 31, 2011. Currently, the government pays about $20 billion to farmers each year. Feed grains and corn mainly occupy the highest share of subsidies, 3...... half of the paper ...... huge deficit. I think we need to have better control over monetary spending or stop this type of financing. While many people still suffer from the poverty line, these food policies give more money to rich billionaires. In conclusion, there are three reasons to stop subsidies for staple crops. First, overproduction and overuse of corn and soybeans could cause a health crisis for people. Second, the unequal distribution of subsidies has limited the growth of fresh fruits and vegetables and organic farmers. And finally, the federal government spent a lot of money on someone who doesn't need help. The government should establish stricter requirements to avoid imprudent spending, such as background checks, financial reporting, income standards, etc. Now it is time for the food industry to enter a free market, where it can balance the needs of people and the price of crops..