Subsidies- who gains, who loses?
So who gains from subsidies? -
- Big farming corporations do. The subsidy system encourages 'monoculture' mainly of feed crops. The large, heavily mechanised agribusinesses, the biggest users of chemical fertilisers, pesticides and herbicides, get the biggest slice of the subsidy pie.
- Agrichemical manufacturers. Sales would be lower if small family farms prevailed, since they use fewer chemicals.
- Intensive chicken, beef and pork producers. The growth of the cheap meat industry is linked to the growth of the fast-food industry which depends on subsidised animal feed. Without it meat would cost generally more and hamburgers would cost a lot more than 99 pence.
Subsidies v Aid -
After military aid, most aid to developing countries is agricultural. Much of it is aimed at increasing - yes, increasing - their reliance on hybrid seeds, agrichemicals and labour-saving machinery. Recently it has been targeted at supporting the export of biotechnology products. All of these have long-term effects on yields, soil fertility and the rural economy.
