Subsidies

Subsidies

Subsidies

Government money given to support agriculture

Subsidies offer guaranteed

prices for cash crops

Subsidies offer

Money to invest in equipment/infrastructure

Subsidies offer

Money to focus on research & development

Subsidies offer

Crop Insurance

Sometimes pay farmers do not…

grow certain crops

Subsidies: Pros

• Wealth for governments/higher

• GDP Farmers can rest/restore lands

• Guaranteed income for growers

• More economic stability where used

Subsidies: Cons

• Keeps food prices artificially low

• Too much government control over market

• Favors farmers in wealthy countries

• Subsidies often go to agribusinesses

• Reduces crop diversity

• Farmers may not grow most profitable crops