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Agricultural Subsidy




An agricultural subsidy is a governmental Subsidy paid to Farmer s to supplement their income, manage the supply of agricultural Commodities , and influence the cost and supply of such commodities on international markets. Examples Of Such Commodities include Wheat , Feed Grains ( Grain used as Fodder , such as Maize , Sorghum , Barley , and Oat s), Cotton , Milk , Rice , Peanut s, Sugar , Tobacco , and Oilseed s such as Soybean s.


AGRICULTURAL SUBSIDIES BY REGION


European Union

See Also: Common Agricultural Policy


See Also: Intervention storage




Japan

See Also: Agriculture, forestry, and fishing in Japan


Japan is best known for having agricultural subsidies put on its rice industry, with the reasoning behind such moves being cultural.


United States


The U.S. Agricultural Department is required by law (various U.S. Farm Bill s which are passed every few years) to subsidize over two dozen commodities. Between 1996 and 2002, an average of $16 billion/year was paid by programs authorized by various U.S. Farm Bill s dating back to the Agricultural Adjustment Act Of 1933 , the Agricultural Act Of 1949 , and the Commodity Credit Corporation , among others.

The beneficiaries of the subsidies have changed as Agriculture In The United States has changed. In the 1930s, about 25% of the country's population resided on the nation's 6,000,000 small farms. By 1997, 157,000 large farms accounted for 72% of farm sales, with only 2% of the U.S. population residing on farms.

The following is the subsidies by crop in 2004 in the United States.




















































































Commodity US Dollars (in Millions) Percentage of Total

Feed Grains 2,841 35.4
Upland and ElS Cotton 1,420 17.7
Wheat 1,173 14.6
Rice 1,130 14.1
Soybeans and products 610 7.6
Dairy 295 3.7
Peanuts 259 3.2
Sugar 61 0.8
Minor Oilseeds 29 0.4
Tobacco 18 0.2
Wool and Mohair 12 0.1
Vegetable Oil products 11 0.1
Honey 3 0.0
Other Crops 160 2.0
Total 8,022 100