Agricultural subsidies: their original purpose and impact todayIndexIntroduction: what are agricultural subsidies? 3Government intervention in the agri-food sector 7Reality 9Works Cited 12Introduction: What are agricultural subsidies?The agricultural sector has changed enormously over the last century in response to major economic changes and technological advances. Farm subsidies are various forms of payments by the federal government put in place in an attempt to stabilize prices, keep farmers in business, and ensure the quality of crops. The federal government currently pays $20 billion in cash to U.S. farmers each year and spent about $250 billion between 1995 and 2005. Currently, a new farm bill is passed every five years, the latest being in 2013 Although there are small changes in each previous farm law, permanent pieces of legislation requiring the U.S. Department of Agriculture to control prices and regulate supplies date back to the 19th century. century. The Commodity Credit Corporation (CCC) finances subsidies and purchases surplus food to regulate and stabilize farm income. There are currently eight different subsidies: direct payments, countercyclical payments, export subsidies, conservation subsidies, marketing loans, agricultural research and assistance, disaster relief, and insurance. 1) Direct payments: 5 billion per year The federal government pays cash subsidies to landowners who produce: wheat, corn, sorghum, barley, oats, cotton, rice, soybeans, minor oilseeds and peanuts. This combination of crops is considered the top ten crucial products. A direct payment is equal to the product of the payment rate for the specific crop, the historical payment acres, and the historical payment yield per...... half of the paper ......z2yiN9IUsy>.Nathaniel, Jeroime. “Farm Bill 2013: An Inside Look at the Biggest Bill You've Never Heard Of.” PolicyMic. October 2013. April 13, 2014 .Peterson, E. Wesley F. A Billion Dollars a Day: The Economics and Politics of Farm Subsidies. Malden, MA: Wiley-Blackwell, 2009."United States Department of Agriculture." United States Department of Agriculture. April 11, 2014. “U.S. Farmers During the Great Depression.” Agricultural collector. April 13, 2014 .Bianco, Deborah. “What are U.S. farm subsidies?” About.com US liberal politics. April 11th. 2014 .