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Why does the federal government give money to farmers to help with the corn crops?
Wiki User
∙ 14y ago
It all comes down to price support. Most of the time, for most farmers, the price of corn is not high enough to pay the cost of its production, without causing a concurrent price increase for the consumer. The US has for years owed its low food prices (compared to the rest of the world) to the mechanization of its farms and the consolidation of its farmland. During bad crop years, or during low demand periods, the farmer does not earn enough money from the crops he produces to be able to stay in business. This is not always the case, of course, since some of the most successful farmers have never taken a government "subsidy" as it's called.
While subsidies are a somewhat controversial topic, they account for a miniscule portion of the total federal budget, and help many farmers stay in business. If the government were to suddenly stop farm support, there would be a lot higher food and fuel prices in the US.
Wiki User
∙ 14y ago
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What did farmers want to use to pay their debts and taxes?
crops by sami
About farming in the 1930s?
Farming in the 1930's was not very good at all, because of the stock market crash no one had any money to buy the farmers crops. So, the farmer ahd to sell their crops cheaply and didn't make any money. Many farmers had to sell their farms
How was the agricultural adjustment act meant tohelp farmers?
Under the Agricultural Adjustment Act, Franklin Roosevelt initiated a program where the government would pay the farmers NOT to raise certain livestock, such as hogs, and NOT to grow certain crops, such as corn, cotton, wheat, and tobacco. With the money from this program, poor farmers could pay off their debts from World War I and get back on there own feet. They would be paid, while also not having to pay for supplies to grow their crops. By raising crop prices
How does Pennsylvania make money?
Farmers got their money by planting crops during the growing season and waiting until they grow and then they sell them or trade for cash. The farmers dought to cross a river to get too the town.
The power of the federal government to borrow money is?
constitutionally limited
Why did farmers grow cash crops?
They hoped the crops would bring more money
Why did many farmers grow crops?
They hoped these crops would bring more money
Why did farmers want the federal government to use silver money in addition to gold?
They owned silver mines and would get rich when the government bought their silver
What does the AAA program from the new deal stand for?
The Agricultural Adjustment Act which was helpful to farmers because the government gave them money for NOT farming crops.
How can western farmers use the transcontinental railroad to make money?
The farmers made money by planting crops and other things
What do farmers do to earn money?
The sell thier crops and eat some of thier own crops
Why did many farmers grow crash crops?
They hoped these crops would bring more money
Why did many farmers grow cash crops?
they hoped these crops would bring more money.
What did farmers want to use to pay their debts and taxes?
crops by sami
Can congress appropriate money to the federal government?
Yes, it is true that Congress can appropriate money to the federal government. This is how federal departments are funded.
How did the new deal hurt farmers?
The new deal hurt farmers because it put many farmers in debt and there were many droughts causing the crops to be destroyed. Since the crops were destroyed, the farmers couldn't make money and turned poor.
Why were cash crops important?
Cash crops are important because they help farmers earn money to live on. They allow farmers to produce food for many people, instead of just their families.
