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Agricultural

Subsidies
Are Subsidized Meals Good for Economic
Health?

Blake

What is an Ag. Subsidy?


Subsidy
A sum of money granted by the government to assist

an industry or business so that the price of a


commodity or service may remain low or competitive
Agricultural Subsidy
A payment by the federal government to farmers for

producing crops.
Protect domestic food supply

Ensure a steady food supply (national defense)

How did they begin?


Great Depression (1930s)

U.S. economy was agriculture based


Large number of Americans were farmers
Overproduction led to decrease in prices because supply

exceeded demand
Farmers could not make a living off of the income

received from selling crops

Ag. Adjustment Act 1933

Paid farmers to not grow food on a certain percentage of


their land to reduce the market glut

Government bought excess crops and stored them for


later use

Farmers in Great Depression

Agriculture Act of 2014


Also known as the Farm Bill
Signed into law on 2/7/14 by President Obama
$956 Billion dollars in spending from 2014-2023

Where the $ is spent

Whats in the Bill?


Food Stamps ($756 Billion)

Over 80% of spending

Not related to agriculture

Payment to low-income families to purchase food

Crop Insurance ($90 Billion)

Used to protect farmers against either the loss of their


crops due to natural disasters (hail, drought, and floods)
or the loss of revenue due to declines in the prices of
agricultural commodities

Elimination of direct payments

Works like any other insurance plan

Conclusion
Bipartisan Support
Republicans- Support because constituents live in

rural areas and, thus, are farmers


Democrats-Support because of Food Stamps

Farm subsidies have been around since the 1930s


Are they still necessary today?
Do they hurt or benefit the U.S. economy?