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# Current farm policy is institutionalized penalization of

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Joined: 16 Jul 2009
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Current farm policy is institutionalized penalization of [#permalink]

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25 Jul 2009, 08:17
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Current farm policy is institutionalized penalization of consumers. It increases food prices for middle- and low-income families and costs the taxpayer billions of dollars a year.
Which of the following statements, if true, would provide support for the author’s claims above?
I. Farm subsidies amount to roughly \$20 billion a year in federal payouts and \$12 billion more in higher food prices.
II. According to a study by the Department of Agriculture, each \$1 of benefits provided to farmers for ethanol production costs consumers and taxpayers \$4.
III. The average full-time farmers have an average net worth of over \$300,000.
(A) I only
(B) II only
(C) III only
(D) I and II only
(E) I, II, and III
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25 Jul 2009, 10:00
answer is 'D' (I and II only)
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18 Aug 2009, 14:34
Aleehsgonji wrote:
answer is 'D' (I and II only)

And why is that?
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18 Aug 2009, 14:55
would go with A, as 3 is not related and 2 does not say how much money in total is being subsidized or cost people....

edit: never mind, the argument by the author does not say how much, but rather just penalizes consumers, so 2 also works as it states consumers is being charged way more than farmers benefit. so, I and II both are right hence D.
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19 Aug 2009, 01:50
i go with D.
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19 Aug 2009, 02:53
boeinz wrote:
i go with D.

can u explain that?

thanks
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19 Aug 2009, 18:04
I. Farm subsidies amount to roughly \$20 billion a year in federal payouts and \$12 billion more in higher food prices.
> Extracted: "It increases food prices for middle- and low-income families and costs the taxpayer billions of dollars a year."
> Indeed billions of dollars are committed.

II. According to a study by the Department of Agriculture, each \$1 of benefits provided to farmers for ethanol production costs consumers and taxpayers \$4.
> Extracted: "Current farm policy is institutionalized penalization of consumers."
> Indeed, this policy is lousy because costs associated with the implementation far exceeds the benefits, hence consumers are penalized in a way.
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20 Aug 2009, 12:14
boeinz wrote:
I. Farm subsidies amount to roughly \$20 billion a year in federal payouts and \$12 billion more in higher food prices.
> Extracted: "It increases food prices for middle- and low-income families and costs the taxpayer billions of dollars a year."
> Indeed billions of dollars are committed.

II. According to a study by the Department of Agriculture, each \$1 of benefits provided to farmers for ethanol production costs consumers and taxpayers \$4.
> Extracted: "Current farm policy is institutionalized penalization of consumers."
> Indeed, this policy is lousy because costs associated with the implementation far exceeds the benefits, hence consumers are penalized in a way.

Thanks
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01 May 2012, 06:54
[quote="boeinz"]I. Farm subsidies amount to roughly \$20 billion a year in federal payouts and \$12 billion more in higher food prices.
> Extracted: "It increases food prices for middle- and low-income families and costs the taxpayer billions of dollars a year."
> Indeed billions of dollars are committed.

I agree with the "costs taxpayer billions of dollars". However, I dont see why the subsidies "iincreases food prices for middle- and low-income families"? Thanks.
Re: farm policy   [#permalink] 01 May 2012, 06:54
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# Current farm policy is institutionalized penalization of

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