Farm Subsidies vital for US economy

* I came across a great article I wanted to share… here are some excerpts and a link to read the entire article.

A Safety Net for All Americans
By: Jeff Nunley

“Most people won’t do the math. Farm subsidies amount to about 0.3% of the federal budget. That means if you’re paying $5,000 per year in federal income taxes (payroll taxes don’t count), the portion of your tax bill to provide food security for this country would be about $15. The return on investment of that fifteen dollars is pretty good.”

“We provide an underpinning for our entire agriculture sector which represents 20% of our GDP.
We contribute to the balance of foreign trade. Agriculture exports are a significant factor in lowering our trade deficit. This helps support the value of our currency, which increases our consumers’ buying power for imported goods and improves our standard of living.”

“Stable food prices stabilize the entire economy. Without a farm program, food prices would still probably average around 10%. However, because food prices would be much more volatile from one year to the next, it would be difficult for consumers to know exactly how much to budget. One year, food costs might be 25% of disposable income and the next they could be 5%. In the years when food costs were high, consumers would curtail other spending to ensure they meet their primary need of food. The entire economy would feel the shocks of volatile food prices. People at the lowest end of the economic ladder would suffer most from sudden spikes in food prices.”

About the Author: Jeff Nunley is the executive director of South Texas Cotton and Grain Association

Tp read the whole article click on the link below: http://www.farmpolicyfacts.org/mm_safety_net_for_americans.cfm