Agriculture Policy

A.1  How have government farms subsidies impacted the United States? The world? 

The farms subsidies seems like a burden to the United States and doesn't really help agricultural 

industry. First of all, the farms subsidies are huge amount of money which could be a large pressure

on tax-payers which includes both producers and consumers. Usually the farms subsidies kicks in 

when the price is low. It seems like a really nice deal but it could also cause overproduction which 

keeps the price low and harms the environment.

A.2  What would be the implications of eliminating subsidies? Consider both American farmers – of all types – and farmers in developing countries (e.g., countries in Africa) – who would benefit or be harmed by ending U.S. farm subsidies?  How?

Subsidies make the cost of producing in America easier and help the American farmers to keep the 

price lower then their competitors such as the foreign farmers. The difference in price makes the 

products from America more competitive than products from countries without farms subsidies in 

the global market.

B.1  Are there “crop subsidy”-type provisions in the CAP? If so, how do they compare to U.S. subsidies?

There is crop subsidy in CAP. Unlike the subsidies in U.S., which goes to ordinary farmers, it

only goes to the wealthy landowners and businessmen. 

B.2  Is the CAP viewed in the same light as U.S. subsidies?  Does it have the same type of economic impact or effects as U.S. subsidies?

      Many European countries seems benefit from CAP payments much more than the American 

      agriculture benefit from U.S. subsidies. 

      Manny European countries especially Western-european countries benefits from CAP a lot such as         France, the biggest agricultural producer in Europe. However, just like American subsidies, it also         cause the inequality in the price in global market.

C.1 What changes are being made to government policy for for milk, cheese, and butter prices?

The 70-year-old policy is abandoned and a bill will offer insurance to farmers to protect themselves from unexpected flow in price of milk and feed.