What will happen if the agricultural subsidies are removed all over the world?

Question

What will happen if the agricultural subsidies are removed all over the world?

Answer 1

Farmers would not be able to afford to grow crops, and therefore the worlds food would disappear. Nothing positive could be gotten out of removing subsidies.

Answer 2

It would become a national security issue.  You think Politicians freak out about not being in control of our energy supply...

Answer 3

Agricultural subsidies is apply in massive form only by developed countries. A remotion of it in all the world will reduce the supply in those economies and the more bigger demand will force to import it from developing economies. It will increase the level of life in developing countries and will reduce inmigration to US, France and Spain.

Answer 4

markets would go crazy.  in some cases poor nations would produce goods cheaper than say america farmers

Answer 5

On the positive side:

Crops would be grown where they can be grown most productively, instead of whichever nation is the richest.

Farmers in poor nations would be able to sell their crops and become less poor.

Foods based on high fructose corn syrup or similarly unhealthy products would become relatively more expensive, making healthy foods a more economically reasonable choice.

Many developing nations would be open to lowering their tariffs on US-made goods.

The Doha round of trade negotiations would be able to continue.

Many foods would continue to be produced in the US, and with the high commodity prices, farmers would still be able to make a profit.

Government expenditures would decrease, which would decrease the budget deficit.

On the negative side:

Food prices would increase somewhat.

Some farms in the US would go out of business, and many of them would probably be family farms.

Many small farms in Europe, which are more heavily subsidized than the US, would go out of business.