Effect of fam subsidies in US on food prices and markets domestically and abroad?

Question

Can someone explain to me the effect that farm subsidies in the US have on food prices and markets domestically and overseas? Please describe who is harmed and who benefits. (Also, please include sources)

Answer 1

They lower input costs, which shifts the supply curve to the right, lowering prices.  This happens both domestically and internationally, as the US is a major exporter of agricultural products.

Harmed:

Farmers in developing countries

US taxpayers (subsidies create deadweight loss)

Poor people in the US (the most heavily subsidized agricultural products also happen to be the least healthy, so that all the poor can afford is bad for them)

The entire economy, since subsidies distort markets so that resources don't necessarily go to where they are most productive

Economies based on subsistence farming, because they are unable to get to cash crop farming, the next stage of development

Helped:

US farmers

consumers around the world (through lower prices)

politicians in farming states (makes it easier for them to get elected)

Answer 2

Most of the farm subsidies go to corn farmers who get the money if they grow corn for ethanol. This does 2 things it means farmers won't grow other crops such as grain or rice. Since there is less grain being grown the supply part of the Supply & demand equationgoes down. so food prices go up. Also more corn is being used to make ethanol so there is less to eat, and corn prices go up. the only people who really benifit are some farmers.