Arguments for and against government intervention in agriculture

Abstract

This article presents some of the main arguments in favor or against agriculture subsidies. The analysis will briefly expose the role of state support for agriculture, according to economic theory. Considering that agriculture is a specific economic branch compared to services and industry regarding the impact of weather and climate factors and their dynamics, this suggests increased risks for the industry are expected to be offset to some extent by the sovereign. The elasticity of the sector also determines some of the features of the factors that influence the support of the sector. Another question is how much they are rational. The effectiveness of the sector can be seen from another angle, through the prism of the value added chain, which graphically displays the current version, which elements of the chain are more effective and which are not. Another theoretical point is connected with the hypothesis of economic prosperity, according to which the lowest effect of agricultural protectionism will have these subsidies, on which the beneficiary can not affect or impact is minimized. In this sense, the state can decide rationally to what should be a serious interference in its sector based on a hierarchy of decision elements and influencing them. The final section is exposed the main arguments that agricultural experts argue against protectionism and its negative impact over the free market economy.