ECO 201 Chapter Notes - Chapter 12: Agricultural Policy, Food Security, Internal Revenue Service
Document Summary
Average income for farm household is 15% than that of a nonfarm family. 10% - 15% of farmers receive approximately 85% of all subsides giving them a much higher income. +less than 15 of all farms go out of business on any given year. Farmers don"t need much stability perfectly positioned to handle price and production risks. Crop-insurance subsides major source of government aid to farmers. Subsidies may actually convince farmers to take more risks in production. Some subsidies increase food output and lower prices but not all do. Total spending on subsidies may be small, but its still wasteful. Too much of population is removed from farming to understand how fragile farming system is. Farming is risky : farming an acre of corn in iowa can cost . Cost of subsidies are offset because they keep food prices low. Must continue to craft agriculture policy that provides incentive necessary to ensure world food security.
