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Food

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Writing plan template

The federal government should subsidize food for three main reasons:

1. Increase the overall supply of healthy food in the economy.

2. Encourage trade by allowing more producers to manage in entering the market.

3. Subsidies allow the overall price level of the food product to lower thus enhancing affordability.

Introduction

Food insecurity has been a huge problem whose adverse impact has continued to arise in the community with some of the households going for days without food. Food insecurity is mostly caused by the inability of the farmers to produce and market their agricultural products in time and in optimal supply. With the different challenges in the economy, farmers find it hard to produce in large quantities due to increased cost of production on top of the recession resulted by the pandemic. The reduced supply result into shortage of healthy food in the market where the consumers can access. Solving the problem insecurity problem can be attained if the cost of producing such foods is reviewed through reduction by the government contributing to part of the overall cost of producing such agricultural products (Feldman). Therefore, the federal government should subsidize healthier food.

Body

Subsidizing the food would involve the government assisting the farmers produce the needed quantity of the food into the market. It is more viable at the moment due to three main reasons as discussed in details.

Subsidizing the food would increase the supply of healthy food in the market. The article describes some of the problems that resulted to decline in food supply even before the pandemic struck as increased cost for farmers to produce food and supply to the market. When the government contributes to the overall cost of the food, the cost of production lowers which allows the farmers to produce more food thus increasing the supply at the market. This would meet the demand for healthy food thus striking the desired equilibrium where the demand matches the supply available (Feldman).

Subsidizing food production in the economy would increase the number of producers in the market. Based on the article, there are very few renowned producers responsible of offsetting the current food insecurity problem. When the average cost of food production is lower, it means more farmers can be involved in supplying the food to the market in pursuit of profits and income from their farming. This would contribute to improved standard of living as more people are able to generate income from food production (Raj, 30).

Subsidizing food production in the economy would enhance affordability of healthy food among citizens. As noted in the article, the students from the low-income families in the colleges would not afford the healthy food from the existing food control systems. This is similar to other households in the economy where some people cannot afford healthy meals on the table. By reducing the cost of production borne by the farmers, more food will be produced by farmers and supplied to the market. When the supply is high, the demand declines which results into the decline in food prices. With lower prices for food, more families can afford the healthy food in the market (Raj, 29).

Conclusion

The federal government should subsidize food production in the economy to increase supply, encourage food production and trade as well as enhance affordability. Understanding these consequences associated with subsidizing food products allows the stakeholders to develop action plan to address food insecurity in the country.

Work cited

Feldman Anna. Taking Care of Each Other: Madison Communities Respond to Food Insecurity in the Age of COVID.2021, March.

Raj, Tilak. "Enhancing Food Security Through Food Subsidy: An Economic Analysis." IUP Journal of Business Strategy 16.1 (2019): 27-36.