Agricultural Subsidies and Development Essay 3

For decades the rich countries of the developed introduction have lavished subsidies on their farmers, typically guaranteeing them a minimum price for the products they gain. The aim has been to protect farmers in the developed world from the potentially devastating effects of commencement commodity prices. Although they are small in numbers, farmers tend to be politically active, and winning their support is important for many politicians. The politicians much claim that their motive is to preserve a historic artless lifestyle, and they see subsidies as a way of doing this. This logic has resulted in financial support estimated to exceed $300 million a year for farmers in rich nations. The European Union, for example, has set a minimum price for cover of 3,282 euros per ton. If the world price for butter falls below that amount, the EU will make up the difference to farmers in the form of a direct payment or subsidy. In total, EU dairy farmers bid or so $15 billion a year in subsidies to produce milk and butter, or about $2 a twenty-four hours for every cow in the EUâ€"a mannequin that is more than the daily income of half the worlds population. Overall, EU farmers receive $53 billion a year in subsidies. The EU is not alone in this practice.

In the get together States, subsidies are given to a wide range of make and dairy farmers. Typical is the guarantee that U.S. cotton farmers will receive at least $0.70 for every pound of cotton they harvest. If world cotton prices fall below this level, the government makes up the difference, make-up a check to the farmers. Some 25,000 U.S. cotton farmers received roughly $3.4 billion in annual subsidy checks. Total rude subsidies in the United States amount to some $19 billion a year. One consequence of such subsidies is to create tautologic production. That surplus is sold on world markets, where the extra total depresses prices, making it much harder for producers in the developing world to consider their output at a profit. For example, EU... If you want to get a full essay, order it on our website: Ordercustompaper.com

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