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Running head: U.S. AGRICULTURE SUPPORT PROGRAMS1Government Intervention Analysis U.S. Agriculture Support ProgramsPamela WilliamsUniversity of PhoenixAugust 10, 2020
U.S. AGRICULTURE SUPPORT PROGRAMS2Government Incentives Analysis – U.S. Agriculture Support ProgramsThis paper is the analysis of the U.S. agriculture support programs and how government interference has helped and/or harmed the economy. The help that farmers received from the government are called subsidies. Government subsidies are either cash grants or loans to farmers to help them grow and support the economy with their products. Farmers and the farming industry are also supported with special U.S tariffs against other countries, special tax concessions, tax exemptions, credits, or deferrals. Farmers also receive loan guarantees, sometimes government authorizes procurement policies that pay farmers more than the actual market price of the product (Amadeo). The government also authorizes stock purchases that keep the farming company's stock price higher than the average or current levels (Amadeo). These subsidies are very lucrative to farmers because it allows the farmers to reduce their production costs thus becoming more profitable.Government subsidies to farmers began early with many programs trying to help farmers who were ravaged in the west by the Great Depression of 1929 and the Dust Bowl in 1930(Peru). The 1930s were very difficult for farmers and everyone dealing with depression and financial difficulties.