e brink of a collapse. Farm subsidies cost the tax payer
This is not a writing assignment, this is a multiple-choice question
Which of the below statements DO NOT REFLECT the views regarding farm subsidies?
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Farm subsidies started with the Great Depression and the Dust Bowl catastrophe of the 1930s, when there was a genuine fear that the nation's agricultural sector was on the brink of a collapse.
Farm subsidies cost the tax payers only a couple of million dollars each year, which is a tiny part of the taxes paid by people. Sevety five per cent of the farm subsidies are going to the small family farms who really need the help from the government in order to be able to remain in farm production.
Artificially high farm prices encourage farmers to grow more, and that results in overproduction. To prevent the overproduction from driving the prices low, the government uses tax payers money to purchase the surplus production. Thus, the farm subsidy.
Agricultural price supports keep the prices of farm products artificially high by way of protecting farmers from unpredictable and sudden weather changes and price and demand fluctuations. It also assures the consumers sufficient supply of foods.
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