What Are Farmer Subsidy Payments?


Quick Answer

Farmer subsidy payments are payment given to farmers from the government to help stabilize the food supply by providing a financial safety net for farmers. This helps ensure that consumers have a stable food supply and that farmers have funds to finance crops.

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Full Answer

Originating out of the fears of an agricultural collapse during the Great Depression and Dust Bowl, subsidy payments protect farmers during hard times such as weather fluctuations and poor economic conditions, and these payments also ensure that food remains affordable and in steady supply for consumers. Sometimes the government pays farmers not to grow crops in order to prevent an oversupply of particular foods in the market.

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