Subsidies in Agriculture Sector

Agriculture Sector – In this fast growing world, an agricultural subsidy is known as a governmental subsidy specifically paid to farmers and agribusinesses in terms to supplement the income of the farmers, manage and succeed the supply of related commodities. Moreover, it influences the major cost and supply of commodities which are wide in range and include wheat, cotton, grains, sugar, and rice. While they are provided to support and advantage those in the agricultural sector out, not all agree with it. In fact, according to various researches many views these subsidies as particularly controversial for its intricate effects and their political origins which may comprise lots of politicization from related groups representing the interests of agribusiness.

The agricultural subsidies vary by region and according to different countries, the amount spent on agricultural development are different such as the European Union likely to spent Euro fifty-seven billion, the United States government gives out $20 billion per year to farmers in straight subsidies. However, in Asia, farm subsidies are still a highly debated and provocative issue.

Furthermore, the notion of subsidies in agriculture is not supported by all due to numerous reasons, and it has noticeably positive and negative aspects which play an important role (Hanson & Schmidt, 2017). Therefore, farm subsidies do have the uninterrupted effect of moving income from the general taxpayers to the owners of the farm.

Agriculture Sector

From a few decades, every country gives a huge percent of subsidies specifically to the agriculture sector in terms of developing the sector. Moreover, this paper entails the major role of subsidies in the agriculture sector in India and the United States along with its positive and negative aspects.

According to various articles and analytical studies it has been critically evaluated and mentioned further that to what extend subsidies in agriculture are beneficial. The positive and negative aspects of subsidies on agriculture sector are measured by important factors and its contribution to growth.