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Introduction
A farm subsidy is a governmental subsidy that is usually paid to the farmers so as to supplement their income and manage the supply of their agricultural products as well as influence the supply and the cost of such products on the international markets.
The issues of the farm subsidies
In the United States of America the agricultural department is required by the law to further subsidize over two dozen commodities and between the years 2002 and 1996 there was an average of about $16 billion dollars per year that were paid by some programs that had been authorized by various American farm bills which dated back to the 1933 agricultural adjustment act, the 1949 agricultural act and the commodity credit corporation amongst others. (Brian 2004)
However the beneficiaries of these subsidies have drastically changed since the agriculture in America has also changed about 25% of America’s population was residing on the country’s six million small farms in the 1930s. On the other hand by the year 1997 157,000 large farms had accounted for about 72% of the sales in the farms with only 2% of the American population residing on these farms.

Source; Riedl, B (2002): Still at the Federal Trough, Farm subsidies for the rich and famous shattered records in 2002. Heritage Foundation
The programs on the farm subsidies have given the farmers some extra money for their crops which also guarantees the price floor. In the 2002 farm bill in America every wheat bushel that was sold the farmers were paid some extra fifty two cents and they were also guaranteed a price of three dollars and eighty six cents from the years 2002 to 2003 and a price of three dollars and ninety cents from the years 2004 and 2007. There are several arguments that are in favor of the farm subsidies and they are largely based on the on the cultural and social values. (Andrew 2002)
However the farm subsidies have a great effect of...