Agri View: Understanding How Farm Subsidies Work

DanAgri View, Economy

farm subsidiesFarm subsidies is something a lot of us know little to nothing about. Everett Griner talks about subsidies and how they keep keeping farms going in today’s Agri View. Everett also explains a bit about the impact tariffs have on farm subsidies.

Understanding How Farm Subsidies Work

Anyone who knows anything at all about modern agriculture knows that farmers depend on subsidies programs to keep them going. They don’t necessarily want them, but the subsidies get farmers enough profit to stay in business.

No other industry sees prices change as frequently, or as much, as agriculture. Although those programs are what feeds the world, they are attracted to both the government and everywhere else.

A situation like the Chinese tariff conflict has an impact on both subsidies and farm prices. Market prices go down, grain prices go up. One prominent Senator put it this way. “We don’t need another subsidy. We need to sell our product.”The question is, to whom?

So with current systems, government subsidies aren’t likely to go away.