1.

 Farming is under perfect competition

o Chapter 23
o http://www.peoi.org/Courses/Coursesen/mic/fram4.html

2.

 Drive down drop prices

 Reduce efficiency of farms
 Increased surpluses/waste
o http://www.genfkd.org/farm-subsidies-distort-market-ignore-small-farmers
o https://www.thoughtco.com/us-farm-subsidies-3325162
o https://www.downsizinggovernment.org/agriculture/subsidies
o https://www.theguardian.com/sustainable-business/agricultural-subsidies-reform-
government-support

3.

 US corn is sold cheaper

 Hurts Mexican farmers
 Displaces Mexican farmers
 NAFTA
o https://www.huffingtonpost.com/2013/01/11/mexican-farmers-agricultural-
subsidies_n_2457845.html
o https://prospectjournal.org/2010/04/19/nafta-and-u-s-corn-subsidies-explaining-the-
displacement-of-mexicos-corn-farmers-2/

Arguments for:

 Lessens the need to import food

 Consistent income for farmers
 Manage food supply

Arguments against:

 Environmental impact
 Gov intervention
 Hurts world market prices
 Hurts non-subsidized farming
 Majority of subsidy is received by large commercial farmers

https://connectusfund.org/6-key-pros-and-cons-of-agricultural-subsidies

http://www.yourarticlelibrary.com/agriculture/subsidies-in-agriculture-arguments-for-and-against-of-
subsidies-in-agriculture/40237