top of page

Why subsidize food production?


Explain reasons why a government may subsidise food production.


CIE October/November 2023.

Preview Answer

Reasons why a government may subsidize food production include:

1. Ensuring food security: Subsidies can help increase the supply of essential food items, reducing the risk of food shortages and ensuring a stable food supply for the population.

2. Supporting farmers: Subsidies can provide financial assistance to farmers, helping to stabilize their income and encourage them to continue producing food even in times of low market prices.

3. Promoting agricultural development: By subsidizing food production, the government can support the growth of the agricultural sector, leading to increased productivity, innovation, and competitiveness in the industry.

4. Controlling food prices: Subsidies can help keep food prices affordable for consumers, especially during times of economic instability or crisis when prices may rise due to factors like inflation or market disruptions.

5. Stimulating economic growth: Supporting food production through subsidies can contribute to economic growth by creating jobs in the agricultural sector, supporting related industries, and generating revenue for the government through increased agricultural output.

Ops... End of preview!

Already purchased Economics Study Pack subscription? Amazing! Click below

What's included 
✔️Full essay
✔️Marking Schemes
✔️Examiner's report

Economics Study Help
bottom of page