Sunday, December 11, 2016

                               USA boosting farmers???

What is a subsidy???😕
A subsidy is an amount of money paid by the government to a firm, per unit of output.

An agricultural subsidy is a governmental subsidy paid to farmers to supplement their income, manage the supply of agricultural commodities, and influence the cost and supply of such commodities. Examples of such commodities include: wheat, feed grains , cotton, milk, rice, peanuts, sugar, tobacco, oilseeds such as soybeans, and meat products such as beef, pork, and lamb.

The United States Department Of Agriculture  has announced it will pay $7 billion in "Agriculture Risk Coverage" and "Price Loss Coverage" (aka "subsidy") payments to farmers this year as prices for most agricultural products, particularly corn, have remained depressed.  At $7BN, subsidy payments will be equal to roughly 10% of the USDA's forecast for aggregate farm income in 2016.  


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