"An agricultural subsidy (also called an agricultural incentive) is a government incentive paid to agribusinesses, agricultural organizations and farms to supplement their income, manage the supply of agricultural commodities, and influence the cost and supply of such commodities."
Initiatives implemented by governments aimed at promoting and assisting agricultural production, often through subsidies, price supports, or incentive programs.
Farm Bill: The Farm Bill is the primary legislation that governs US agricultural policy. It is renewed roughly every five years and contains provisions for crop insurance, commodity subsidies, conservation programs, and nutrition assistance programs.
Commodity Programs: Commodity programs provide subsidies and price support to farmers growing certain crops, such as corn, soybeans, wheat, and cotton. These programs aim to stabilize prices and provide a safety net for farmers who may face market volatility.
Crop Insurance: Crop insurance is a risk management tool for farmers that protects against crop losses due to weather, pests, and other unforeseen events. It is subsidized by the government and administered by private insurance companies.
Conservation Programs: Conservation programs provide financial incentives to farmers who engage in practices that protect natural resources and preserve the environment. These programs include conservation easements, wetlands preservation, and sustainable agriculture practices.
Rural Development: Rural development programs aim to promote economic growth and improve quality of life in rural communities. These programs provide funding for infrastructure, rural health care, and education, among other initiatives.
Trade Policy: Trade policy plays a significant role in agriculture, as farmers rely on access to international markets for their products. Agricultural trade policy includes tariffs, subsidies, and trade agreements that can impact farm income and market access.
Direct Payments: Direct payments are subsidies provided to farmers without any specific requirement or activity. This system has since been replaced by another form of subsidies in recent years.
Risk Management Programs: Risk management programs help farmers manage the inherent risks of farming, including crop failures, price volatility, and weather-related disasters. These programs include crop insurance, hedging, and forward contracting.
Agricultural Marketing: Agricultural marketing focuses on the process of getting agricultural products from the farm to the consumer. This includes supply chain management, market analysis, and branding and promotion.
Food Safety: Food safety policies and regulations aim to protect consumers from foodborne illnesses and establish uniform standards for food production and processing. These policies cover everything from food labeling to foodborne illness outbreaks.
Nutrition Assistance Programs: Nutrition assistance programs provide food and nutrition assistance to low-income individuals and families. These programs include the Supplemental Nutrition Assistance Program (SNAP), the National School Lunch Program, and the Women, Infants, and Children (WIC) program.
International Agricultural Development: International agricultural development programs provide funding and technical support to farmers in developing countries. These programs aim to increase agricultural productivity, reduce poverty, and promote sustainability.
Animal Welfare: Animal welfare policies and regulations aim to protect animals from inhumane treatment and establish standards for animal welfare in agriculture. These policies cover everything from animal housing and care to transport and slaughter.
Crop Insurance: A program that offers farmers financial compensation for losses due to weather, pests, or other factors, in order to stabilize their income.
Conservation Programs: These programs provide incentives to farmers for adopting conservation practices that promote soil health, water conservation, and wildlife habitats.
Price Support Programs: A program that offers government subsidies to help maintain minimum prices for certain agricultural commodities, such as wheat or corn, to stabilize income for farmers.
Disaster Relief Programs: These programs provide emergency assistance to farmers impacted by natural disasters like floods or droughts.
Commodity Subsidies: A program that subsidizes farmers to grow certain crops, for example, corn or soybeans, to maintain a stable supply and support the industry.
Agricultural Research Programs: Programs that fund research and development in agricultural technology, soil conservation, and new farming practices.
Export Promotion Programs: Programs that promote the export of U.S. agricultural products through trade missions, education and market development initiatives.
Rural Development Programs: Programs that support rural communities through broadband investments, infrastructure improvements, and access to credit and capital.
Renewable Energy Policy: These programs promote the production and use of renewable energy, such as wind and solar, in agriculture.
Marketing and Promotion Programs: Programs that promote and market U.S. agricultural products, such as the National Honey Board or the Cotton Board.
"Examples of such commodities include: wheat, feed grains (grain used as fodder, such as maize or corn, sorghum, barley and oats), cotton, milk, rice, peanuts, sugar, tobacco, oilseeds such as soybeans and meat products such as beef, pork, and lamb and mutton."
"A 2021 study by the UN Food and Agriculture Organization found $540 billion was given to farmers every year between 2013 and 2018 in global subsidies."
"The study found these subsidies are harmful in numerous ways."
"In wealthy countries, they damage health by promoting the overconsumption of meat."
"In under-developed countries they encourage overconsumption of low-nutrition staples, such as rice."
"Subsidies also contribute to the climate crisis, by encouraging deforestation."
"They also drive inequality because smallholder farmers, many of whom are women, are excluded."
"According to UNDP head, Achim Steiner, redirecting subsidies would boost the livelihoods of 500 million smallholder farmers worldwide by creating a more level playing field with large-scale agricultural enterprises."
"A separate report, by the World Resources Institute in August 2021, said without reform, farm subsidies 'will render vast expanses of healthy land useless'."