What is a farm subsidiary?
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Farm Subsidiary The term "subsidiary" when used in relation to farming can mean two entirely different things: On meaning is a farm created by citizens to produce products for their own use, sell the surplus on the market, and to provide services with their property such as green rural tourism services The second meaning refers to a farm whose voting stock is more than 50% controlled by another company, called the parent company. The parent company may or may not be involved with farming and can be foreign or domestic. The parent company can also represent the same ideals as the subsidiary or their ideals may be in direct conflict Here's an example: A company that produces and sells organic seeds and supplies may be a subsidiary of a company that is engaged in bioengineering (genetically modifying crops with genes from other species).
Because the company engaged in bioengineering controls over 50% of the stock of the organic seed company, it could pose a conflict of interest between the two companies, with final decisions being made by the parent company This type of conflict of interest could also pose questions for the organic grower, who may not want to buy from a company that is a subsidiary of one of the companies engaged in bioengineering For a related quesion go here: What is a farm subsidy.
57 Ending direct payments to farmers and deregulating the farm industry would eliminate inefficiencies and deadweight loss created by government intervention. However, others disagree, arguing that a more radical transformation of agriculture is needed, one guided by the notion that ecological change in agriculture cannot be promoted without comparable changes in the social, political, cultural and economic arenas that conform and determine agriculture. The organized peasant and indigenous based agrarian movements ( i.e.
The Via Campesina) consider that only by changing the export-led, free-trade based, industrial agriculture model of large farms can the downward spiral of poverty, low wages, rural-urban migration, hunger and environmental degradation be halted. Farm Commodity Programs: A Short Primer, a Congressional Research Service Report for Congress, 20 June 2002. Should the United States Cut Its Farm Subsidies?
You Are What You Grow – Article on farm subsidies from The New York Times. Ripe for Reform: Six Good Reasons to Reduce U.S. Farm Subsidies and Trade Barriers by Daniel Griswold, Stephen Slivinski, and Christopher Preble (5 September 2005). Still at the Federal Trough: Farm Subsidies for the Rich and Famous Shattered Records in 2001– a paper presented by the Heritage Foundation arguing that farm subsidies are corporate welfare and do not benefit small family farms.
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