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Random information on the term “Subsidize”:
An agricultural subsidy (also called an agricultural incentive) is a government incentive paid to agribusinesses, agricultural organizations and farms to supplement their income, manage the supply of agricultural commodities, and influence the cost and supply of such commodities. Examples of such commodities include: wheat, feed grains (grain used as fodder, such as maize or corn, sorghum, barley and oats), cotton, milk, rice, peanuts, sugar, tobacco, oilseeds such as soybeans and meat products such as beef, pork, and lamb and mutton. A 2021 study by the UN Food and Agriculture Organization found 87% of the $540bn farmers given every year between 2013 and 2018 in global subsidies are harmful to both people and environment.
Agricultural subsidies were originally instituted to stabilize markets, help low-income farmers, and aid rural development.[unreliable source] In the United States, President Franklin D. Roosevelt signed the Agricultural Adjustment Act, which created the Agricultural Adjustment Administration (AAA). This came as a result of the series of programs, public work projects, financial reforms and regulations enacted by the president known as the New Deal. The AAA helped to regulate agricultural production by reducing surplus and controlling the supply of agricultural products in society. Through the control of seven crops (corn, wheat, cotton, rice, peanuts, tobacco and milk), Congress was able to balance the supply and demand for farm commodities by offering payment to farmers in return for taking some of their land out of the farming process.[unreliable source?] Unlike traditional subsidies that promote the growth of products, Congress recognized that agricultural prices needed to be boosted and did so by limiting the growth of these crops.