Module 4: Cheap Food and Farm Subsidies

Amid the drastically falling price of crops, Congress—with the backing of President Franklin Roosevelt—passed legislation that paid small farmers to take cropland out of rotation.

Crop yields—and farm revenue—fluctuate based on weather conditions and the spread of certain plant diseases.

Crop yields—and farm revenue—fluctuate based on weather conditions and the spread of certain plant diseases.

Crop yields—and farm revenue—fluctuate based on weather conditions and the spread of certain plant diseases.

Proponents say that price supports and other subsidies help smooth out any losses farms may experience during lean years.

Proponents say that price supports and other subsidies help smooth out any losses farms may experience during lean years.

Proponents say that price supports and other subsidies help smooth out any losses farms may experience during lean years.

By guaranteeing prices and managing how much of each crop is grown (or not grown), the government ensures a steady domestic supply of basic commodities for citizens.

By guaranteeing prices and managing how much of each crop is grown (or not grown), the government ensures a steady domestic supply of basic commodities for citizens.

Proponents say this protects the United States against fluctuations and interruptions in the global food supply.

Subsidies can stifle competition. Critics argue that the practice promotes poverty in nations that grow important commodities, but are unable to compete on price because of the subsidy.

For example, sugar is grown in some of the world’s poorest countries. They would benefit from exporting it to the United States. But the combination of a government subsidy for U.S. sugar growers and a tariff—or fee—on foreign sugar does not make that economically feasible.