Subsidies happen to be payments, financial concessions, or privileges provided by the
government to favor businesses or customers. In the 1930s, subsidies had been designed to
favor agriculture. John Steinbeck expressed his dislike of the farm subsidy system of
the United States in his book, The Grapes of Wrath. Because book, the government gave
money to farms so they would expand and sell a few crops. Therefore
Steinbeck argued, a large number of people deprived unnecessarily. Steinbeck examined plantation subsidies
from a personal level, displaying how they harm the common man. Subsidies have a variety
of different problems, both on the micro and macro level, which should not end up being ignored. Inspite of
there are many benefits, farm financial assistance are an inefficient and unable to start part of the economic
The difficulties of the American farmer came about in the 1920s, and different methods
were brought to help solve them. The usa still disagrees on how to fix
the continuing difficulty of farming overproduction. In 1916, the number of people living
on farms was at its maximum at 32, 530, 500. Most of these farms were relatively small
(Reische 51). Technological advances in the twenties brought various effects. The
utilization of machinery elevated productivity although reducing the advantages of as many plantation laborers.
The industrial rate of growth of the twenties drew many workers off of the farm and into the metropolitan areas.
Equipment, while raising productivity, was very expensive. Demand for food, though
stayed relatively frequent (Long 85). As a result of this kind of, food rates went down. The
small farmer was not a longer capable to compete, inadequate the capital to get productive
machinery. Small farms dropped their functionality, and many maqui berry farmers were forced to
merge to remain competitive. Fewer, bigger farms come (Reische 51). During the
Depression, lack of employment grew when income shrank. An extended drought had
aggravated the farm trouble during the thirties (Reische 52). Congress, to counter this kind of
passed price support legislation to assure a profit to the farmers. The Soil Preservation
and Domestic End Act of 1936 allowed the government to limit plot use to get
selected soil-depleting plants. The Farming Marketing Contract Act of 1937 allowed
the federal government to set the minimum cost and volume sold of any good at the marketplace. The
Agricultural Realignment Act of 1938, farmers were given selling price supports for not growing
crops. These allowed farmers to mechanize, which was required because of the scarcity
of farm labor during Ww ii (Reische 52). During Ww ii, demand for foodstuff
improved, and farmers enjoyed a time of standard prosperity (Reische 52). In 1965, the
government reduced surplus by simply getting maqui berry farmers to set besides land to get soil conservation
(Blanpied 121). The Agricultural Action of 1970 gave direct payments to farmers to create
aside some of their property (Patterson 129). The 1973 farm bill lowered help to maqui berry farmers by
lowering the point income intended for price supports. The 1972s were good years for farmers.
Wheat and corn prices tripled, area prices bending, and farmville farm exports outstripped imports
by 24 billion dollars (Long 88). Under the Carter administration, plantation support
was reduced. Competition coming from foreign market segments, like Argentina, lowered prices and
incomes (Long 88). Ronald Reagan desired to wean the farm community from
government support. Later on in his administration, although, he started the Payments In
Kind policy, when the government paid farmers never to grow significant crops. Inspite of
these kinds of various initiatives, farms always deal with the difficulties that went up in the 1920s.
Farm financial aid seem to have benefits for the small player. Each year as
1947, there has been a net out-migration of farm building people (Reische 53). American farm
production has tripled since 1910 whilst employment features fallen 80 percent (Long 82).
Small relatives farms have the lowest total family incomes (Long 83). Farming is definitely following
a craze from many small facilities to a few significant farms. Competition among maqui berry farmers has
increased supply faster than demand. Fresh seed varieties, better infestation control, productive
machinery, public investments in irrigation and transportation, and better supervision
will increase farm result. The ensuing oversupply of farm goods, which creates a low
profit margin, drives more compact farms out of business. Smaller facilities lack the capital and
income to acquire the equipment they need to take on larger facilities (Long 85). Many
see this kind of tendency towards consolidation and mechanization of farms being harmful to the
United States in the long run, plus they see financial assistance as a way of achieving a social
desire to preserve the relatives farm. In the event the family farm represents whatever, its an extremely
romantic and fundamental relationship among people and resources (MacFadyen 138). Fewer
farms mean fewer jobs and a higher concentration of riches. Ten 30, 000-acre facilities may
produce as much food being a hundred 3000-acre farms, however the former supports machinery
the latter, community (MacFadyen 138). Farm financial aid are designed to prevent the
extinction of the tiny farmer.
Inspite of the social benefits, subsidies have sufficient problems. The subsidy system
is normally wasteful, the us government finances irrigation systems inside the California Soberano
Pit, and then compensates farmers never to grow crops into it (Solkoff 27). Some rewards hurt
the small player. Marketing orders and regulations hurt tiny operators by giving more
money to greater farms. Big farms are able to overproduce and undersell applying advanced
machinery, traveling lesser facilities out of business (Fox 28). Financial assistance also let foreign
markets to be competitive by simply artificially raising market rates (Long 91). Artificially
raising industry prices create a surplus that could normally always be solved by free market
program. In a assumptive free industry, overproduction could drive excessive farms out of
business, until equilibrium would establish on its own for both price and quantity of farm
goods. Subsidies allow inefficient facilities to continue to exist, which in turn creates an
ineffective economic system. Financial aid also increase the price tag on other customer products
while as well increasing taxes to pay for all of them. Perhaps most significantly, subsidies will not
match their interpersonal role. About 112, 1000 large farms equivalent to the number of farms in
Mn alone create half the nations meals and fiber (Long 82). The many
government subsidy policies tend not to preserve the family farmville farm, and the quantity of small
farms offers almost constantly been for the decline. Subsidies are not practical in the
economic and the social aspects.
Despite identified benefits, farm subsidies is surely an inefficient and dysfunctional
part of the economic system. Their particular goal, nonetheless, is respectable. Writers just like John Steinbeck
produced people conscious of the plight in the small character, and subsidies were the only solution
he federal government could imagine. If there is some way to prevent the decline of small facilities
it does not carry the various subsidy problems, the gardening policy would undoubtedly
change. Perhaps the same anti-trust laws that prevented the monopolizing of industry
could be utilized to prevent the consolidation of facilities. Until various other system is created
that could deal with the problems of the character, subsidies will still be used.
Blanpied, Nancy. Plantation Policy. Congressional Quarterly: Washington D. C., 1984.
Fox, Michael. Agricide. Schoken Books: New York, 1986.
Long, Robert Emmet. The Farm Problems. Wilson Company.: New York, 1987.
MacFadyen, J. Tevere. Gaining Ground. Holt, Reinhart, and Winston: New York, 1966.
Reische, Diana. U. S. Gardening Policy. Pat Co.: New york city, 1966.
Solkoff, Joel. The Politics of Food. Serranía Club Literature: San Francisco, 85.