Recently it was very crudely pointed out by a special ('environtmental') interest group that farmers were "no more than a bunch of welfare recipients.
This group of educated professionals apparently have either been misinformed, or they are totally uninformed, and perhaps the basic role of farm subsidies should be explained at a beginner's level.
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The subsidy is for the American public - not the farmer. It enables the American public to spend only 11.2% of their income for food in the 1990s. America enjoys the best quality food at the lowest price in the world. Most spending growth for food in recent years is food eaten away from home. (In 1950, 17.7% of income was spent for food.)
(lots of good info in this link)
Price received for a bushel of corn: $1.90
Production cost: $2.78
Price received for a bushel of soybeans: $4.85
Production cost: $6.36 to 7.76
(Prices are per
www.agstats.state.il.us/farmfacts. Production figures are obtained from farm business records kept by Illinois Farm Business Farm Management Association at
farmdoc : COSTS TO PRODUCE CORN AND SOYBEANS -- 2000.)
Anyone can see from the above figures the American farmer is in trouble.