Conestoga College: Agriculture Subsidies Research Project Analysis

This report analyzes the impact of government subsidies on agriculture, focusing on both the advantages and disadvantages of such policies. It begins with an introduction that explains the purpose of agricultural subsidies in stabilizing markets, aiding rural development, and assisting low-income farmers. The report then delves into the pros, including the reduction of agricultural imports, stabilization of infrastructure, provision of steady incomes to farmers, and effective management of food supply. The cons discussed involve increased government intervention, manipulation of market forces, and potential for product diversity issues due to subsidy eligibility. The analysis is supported by references to academic research, providing a balanced perspective on the economic and social implications of agricultural subsidies. The conclusion emphasizes the importance of these subsidies in improving farmers' quality of life and ensuring sufficient food production.

Running head: RESEARCH PROJECT
Research Project
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Introduction: Government Subsidies for Agriculture Pros and Cons
Government subsidies for agriculture is a system that is instituted to stabilize the
agricultural market, help aid rural development and assist low income farmers.
Unlike the traditional subsidies which is used to promote and encourage growth of
products, parliament or the congress recognized that prices of food commodities and
agricultural prices needed to boost (Alizamir, Iravani, & Mamani, 2018).
Pros and Cons
Research shows that farmers are among the most underpaid and underprivileged
people in the world. This notwithstanding that their role in the society is critical and
fundamental in the provision of food to the entire population. Many countries
including Canada have designed programs with the sole purpose of providing,
financial, educational and technological aid to the farmers. The main purpose of
government agricultural subsidies is to help farmers in according them quality of life
and ensure that farmers adequately produce enough for the people. An agricultural
subsidy program is patterned from the Agricultural Subsidies Act (Carolan, 2016).
The following are the pros and cons of the agricultural subsidies program;
Pros of Agricultural subsidies
1. Reduction of agricultural imports- with the growing population and their need for
food, farmers should produce more. However, farming is an inconvenient and
tedious occupation and a reduction in production will lead to more imports to fully
feed the people. Government subsidies ensure that people are encouraged to
farm which leads to more production and less imports.

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2. Stabilization of agricultural infrastructure- subsidies aid farmers to purchase
technology and equipment for enhancing production. Subsidies also develops
infrastructure that is necessary for facilitation transport of agricultural products.
3. Provision of steady incomes to farmers- with the help of agricultural subsidies,
farmers can be assured of a steady income regardless of the state of economy.
With government intervention through subsidies, farmers do not have to worry
about low marketability and poor harvest.
4. Managing of food supply- the better the subsidies, the more the farmers and
therefore the greater the production or yield. Higher yield results to more supply
of food. With plenty of food supply, a country can even export to other countries
therefore helping the farmer with increased income (Chen, Wen, Wang, & Nie,
2017).
Cons of government agricultural subsidies
1. Increased need for intervention by government- subsidies affect directly the
supply and prices of commodities. The government through this interventions
use this tactic to manipulate the market forces and this is predicted through
fluctuations of market.
2. Research has also shown that there is lack of product diversity due to
government subsidies. This is because not all crops are eligible for
government subsidies.
3. Some research has shown that government subsidies discriminate against
farmers producing crops that are not eligible (Kirwan, & Roberts, 2016)..
4. The continuous planting of similar crops due to subsidies reduce
diversifications and alternating crops in farms. Eventually, this may lead to
hurting of the environment due to monotonous farming.

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Conclusion
Research has shown that government subsidies have both pros and cons to the
farmers and the society. However, it is important that government agricultural
subsidies help farmers in according them quality of life and ensure that farmers
adequately produce enough for the people.

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References
Alizamir, S., Iravani, F., & Mamani, H. (2018). An analysis of price vs. revenue
protection: Government subsidies in the agriculture industry. Management
Science, 65(1), 32-49.
Carolan, M. (2016). The sociology of food and agriculture. Routledge.
Chen, Y. H., Wen, X. W., Wang, B., & Nie, P. Y. (2017). Agricultural pollution and
regulation: How to subsidize agriculture?. Journal of cleaner production, 164,
258-264.
Kirwan, B. E., & Roberts, M. J. (2016). Who really benefits from agricultural
subsidies? Evidence from field-level data. American journal of agricultural
economics, 98(4), 1095-1113.