The government is very much involved in aiding and regulating agricultural businesses. This is true for sustainable, eco-friendly farms as well. Arguments can be made for why this is a good thing, and why it might not be.
Here, we will explore the ways in which agricultural subsidies can be helpful to small farms, and community-based farming in general.
Less Importing
It is important for a country to be sustainable in terms of its food supply. The world is interconnected for now, but you never know when and how things might change. It is important to support the businesses within your own local community, and subsidies are one way to do it. This is because they decrease overall importing.
Initial Investment
The largest obstacle towards starting a farming business is the initial costs of investing. It’s a lot to pay right away, especially for a venture that might not work out in the end. Subsidies make this part of the process easier and more manageable, providing a safety net for new businesses.
Subsidies for this initial expense are there to level the playing field for those getting into the business.
Steady Income
One worrisome element about running a farm is the inconsistencies in how much produce is yielded. There are good and bad seasons, and good and bad years. In many cases, this is out of your control.
Subsidies help offset this problem. When the government is obligated to pay you a certain amount every month, it can provide a sense of security and an ability to plan your finances with less risk and more comfort.
Steady Food Supply
There are those who would argue that a steady food supply isn’t something to be left to the market alone. Instead, governments should provide assistance to ensure a steady supply of food, particularly in urban areas where you must rely on food coming from the countryside.
One way of doing so is to have subsidies for small farms. This offsets some of the costs, and makes farms more secure overall. However, this isn’t the only solution. Investing in infrastructure is also important.
Helping the Little Guy
The farming industry is a field of work not suited to the little guy or their needs. Large, industrial arms are slowly but surely crowding out the smaller, family-owned operations. The market forces are not making it possible for these businesses to rise, even with a good product to back them. Therefore, they are mostly sold to large competitors.
Subsidies could level that playing field, giving an edge to smaller companies. This is the most controversial of the benefits.
Downsides
It’s important to keep in mind that there are downsides to this policy, as well. For example, many feel that any sort of government influence on market forces is a bad thing, as it helps one part and therefore damages another.
Downsides beyond this extreme opinion lie mostly in the government’s ability to pick and choose who should receive a subsidy. There is always an arbitrary feel to this.
Conclusion
There are ways for a government to aid small farms, mostly via tax cuts and subsidies. Subsidies are usually the most controversial, but they have their benefits as well.