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Farm Subsidies - Assignment Example

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Trends in farming continue to render farm subsidies irrelevant due to the ever rising supply of imported farm produce (Miller & Spoolman,…
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Farm Subsidies
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Farm Subsidies Affiliation: Farming has increasingly become competitive across the globe as production and supply of agricultural produce exacerbate around the world. Trends in farming continue to render farm subsidies irrelevant due to the ever rising supply of imported farm produce (Miller & Spoolman, 2011). In this respect, support for farm subsidies has declined over the years. On the same note, prices of farm produce continue to decline as competition becomes more intense both locally and internationally. As a result, farm-based businesses have become more and more popular, outperforming the need for farm subsidies at the domestic level.
Farm subsidies should be phased out to accommodate contemporary trends in agriculture. Resources directed to farm subsidies could be invested in more productive projects that lack complementary alternatives. There are numerous alternatives in acquiring farm produce in the event that local farmers fail to meet local demand. An outstanding alternative is importation of farm produce. Prices of imported farm produce are relatively low due to absolute or comparative advantages enjoyed by the source of exports.
In the contemporary times, every aspect of production has become oriented towards international interdependence. Supplying products and services at the minimum cost possible is the primary objective that any given business entity seeks to achieve. This is more so due to the fact that business enterprises operate under a profit motive. Even with farm subsidies eliminated, product supply in the markets can still remain constant or even increase through agricultural businesses (Miller & Spoolman, 2011). Therefore, farm subsidies should be phased out.
Reference
Miller, G. & Spoolman, S. (2011). Living in the Environment. New York: Cengage Learning. Read More
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