Research Paper: Agriculture Subsidy

Sample Research Paper

An agriculture subsidy is a financial support provided by the government to farmers which is an add-on to the farmer’s income and serves as a motivator or an investment to enhance and improve supplies of agricultural commodities The proponents assert that the subsidies safeguard the farmer against variation in prices of agricultural commodities as well as protect the consumer against rise in prices when the crop yield is low for some reason.  These prices oscillate due to the crop spoilage or market slumps. The subsidy payments is a method of ensuring that the farmer take proper care of and tend the farms well. The farmers have adequate funds to maintain farm infrastructure. If the quality of the crop is good, the ultimate consumer also benefits.

Subsidy leads to better tending of farms and crops producing a higher and better quality yield. When an excess quantity of agricultural commodities is produced particularly in case of their supply exceeding demand, the abundant commodity is dumped in markets. These can also be foreign markets. The prices of dumped products are very low.

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