Subsidies

What factors influence your family’s choices about what

to eat?

The Gonzalez Family

http://www.pbs.org/pov/foodinc/video_dollar.php

What is a subsidy?

Form of financial assistance provided by the government, for industries, companies and individuals

Farm subsidies – ensure that farms can make a profit and stay in business,

In some cases to insulate farms from the impact of a bad growing seasonEnsure farms won’t have to raise the price of their products, which could make out food more expensive.

American agricultural subsidy:

– Tax dollars paid to farmers and large agribusinesses as additional income to allow the government to manage the cost and supply of specific crops. In the United States, corn growers receive the most federal assistance, resulting in an abundance of corn being grown and then sold at a low price. Other subsidized crops include soybeans, wheat, rice, sugar and cotton.

How do farm subsidies affect the prices of certain types of

food?

Subsidies in Malawi

A closer look at Malawi

Agriculture employs 80% of the country’s workforce

President Bingu wa Mutharika introduced the Farm Input Subsidy Program (FISP) in 2005 to bring food security

Subsidized fertilizer so farmers could successfully plant and reap yields to feed themselves as well as others**

Tobacco, sugar, coffee, and tea are important cash crops in Malawi

Doesn’t go without difficulties

Malawi results

http://www.youtube.com/watch?v=lf2jAavbqOg

Malawi and AmericaPROS

Mitigate the effects of disaster

Manage the supply of foodSteady domestic supply of basic commodities for its citizens

CONSAmerican agriculture has changed.

1933 - 25% were farmers. Now 2% are farmers

Subsidies can stifle competition

Subsidies drive production decisions.

Expensive

Voters choice?

Since this is our tax money, what kind of aid would you wanted give to farmers?