subsidy

Good Essays
Topics: Maize, Obesity
Farm subsidies are intended to alleviate farmer poverty, but the majority of subsidies go to commercial farms with average incomes of $200,000 and net worths of nearly $2 million.
Farm subsidies are intended to raise farmer incomes by remedying low crop prices. Instead, they promote overproduction and therefore lower prices further.
Farm subsidies are intended to help struggling family farmers. Instead, they harm them by excluding them from most subsidies, financing the consolidation of family farms, and raising land values to levels that prevent young people from entering farming.
Farm subsidies are intended to be consumer-friendly and taxpayer-friendly. Instead, they cost Americans billions each year in higher taxes and higher food costs.

The Government's Influence on the Cost of Food
- Food Subsidies (1995-2009)
#1 - corn subsidies ($4.0 billion)
#2 - cotton subsidies ($2.3 billion)
#3 - wheat subsidies ($2.2 billion)
#4 - soybean subsidies ($1.1 billion)
#5 - dairy program subsidies ($1.1 billion)
#6 - fruits and vegetables ($825 million)
- How U.S. corn crops are used (2008)
2.7% - 327 million bu. - Human consumption - grits, corn flour, corn meal, beverage alcohol
7.8% - 943 million bu. - Production of starch, corn oil, sweeteners (HFCS, etc.)
15.3% - 1.85 billion bu. Exports
43.3% - 5.25 billion bu. Livestock feed
30.1% - 3.65% billion bu. Ethanol production
The real cost of cheap food
- Historical cost of food (price of food relative to price of all items)
Note: The ration to Consumer Price Index for food to the Consumer Price Index for all items less food (base period 1982 - 84)
1952 ~ 1.11
1962 ~ 1.03
1972 ~ 0.80
1973 ~ 1.15
1982 ~ 1.02
1992 ~ 0.50
2002 ~ 0.50
- Obesity rate vs. cost of food (U.S. obesity rate, food costs as% of disposable income)
Obesity rate: 1971 - 14.5%, 1999 - 30.9%, 2008/2009 - 26.7%
Food costs: 1971 - 13.4%, 1999 - 10.2%, 2008/2009 - 9.6% - Overweight Americans in 1950s
33% - overweight, 10% -

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