 Hi, I'm Ines. I'm a contributor here at Food Unfolded. Worldwide, more than 200 billion US dollars are given to farmers each year in the form of subsidies. In Europe alone, farming subsidies consist of one-third of the total EU budget. So how do these subsidies affect food production? And are they a barrier to sustainable farming? To understand this, we need to look at what farming subsidies are and why they exist. Farming subsidies are financial incentives provided by governments to support agricultural production. They are aimed at ensuring food security, stabilizing food prices, and providing an income support for farmers, recognizing that the profitability of the profession often falls short of covering its costs. Following the devastating consequences of famine-related deaths during World War II, which matched their outnumbered military losses, farming emerged as a priority industry. In the post-war era, faced with supply shortages and volatile food prices, governments worldwide recognized the need to bolster agricultural production and secure food supplies. Consequently, farming was given all the necessary technology, subsidies, and support to thrive and efficiently feed nations. Over time, subsidies have expanded to encompass a broader range of objectives, like improving farmers' living standards or protecting the environment. In the past and present, farmer subsidies have had unintended consequences. The EU's Common Agricultural Policy successfully managed to secure food supplies and grow farmers' incomes in the 1970s, as it set out to do. But this success was also accompanied by unexpected side effects, overproduction crises, milk lakes and butter mountains, issues of overproduction that the dairy industry still faces to this day, despite its numerous reforms. In 2021, a report was published by various EU and agencies, shedding light on the detrimental impacts that subsidies have on agricultural practices worldwide. The report found that nearly 90% of annual global support that governments give to agricultural producers includes measures that distort prices and hurt human health and the environment. A primary concern regarding the environmental impact of farming subsidies is their influence on land use. In many countries, including those in the EU, farmers generally receive income support based on their farm size in hectares, with larger farms receiving greater support. This incentivizes both the expansion of agriculture into areas that were previously untouched and farm buyouts by larger farms with more money. This expansion comes at the expense of valuable ecosystems and farmers with less land and less profit. Farming subsidies targeted towards specific crops pose additional environmental challenges. These subsidies create a strong incentive for farmers to continuously cultivate a smaller selection of crops, leading to intensified farming practices that heavily rely on chemical fertilizers and pesticides. In the United States, various subsidies have shaped what and how much American farmers grow. While support is available for a wide range of fruits, most support is concentrated among a few commodities, often called the big four, corn, soybeans, wheat and rice. This concentration is partly a reflection of the fact that primary subsidy payments are based on historical production and base acres, rather than current production. Unfortunately, the production of these crops often comes in the form of large monocultures and the consumption of these in the form of ultra-processed foods. The good news is that many governments, like the European Union, Vietnam, China and the United States, are starting to redirect their farm support programs to incentivize farmers towards more sustainable practices. The Green Direct Payment is a program implemented by the EU that aims to reward farmers for protecting natural resources by, for example, protecting biodiversity and providing public goods such as the maintenance of natural landscapes. As part of this program, 30% of subsidies are reserved for greening initiatives. Reforming agricultural subsidies will have to play a role in supporting the shift towards healthier and more sustainable food systems. For farms to become more sustainable, they also need to be financially sustainable. Providing subsidies and support would be the best route to transition into a food system that supports both the needs of farms and the planet. Subsidies can be coupled to agroecological practices such as organic farming, sustainable crop rotation, or on-farm capitals such as electric vehicles and solar water pumps. Striking a balance between food security and protecting the environment requires an effort to align subsidy schemes with ecological sustainability and the long-term well-being of both farmers and the planet. If you're interested in learning more about the origins and sustainability of our food, subscribe to Food Unfolded on YouTube, Instagram, and visit our website at foodunfolded.com.