Distortion of national economies from food subsidies

Food production, especially in industrialized countries, tends to be highly subsidized and protected from international competition. These subsidies have encouraged the overuse of soil and chemicals, the degradation of the countryside, and the pollution of both water resources and foods by the chemicals used. The success of this effort has resulted in surpluses and their associated financial burdens, with some of these surpluses being sent at concessional rates to developing countries where they have undermined the farming policies. In number of developing countries food subsidies form a significant share of government expenditures and may introduce price distortions into the economy and may result in large economic losses to food producers.