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Which of the following statements are correct about Direct farm subsidies?
1. Direct farm subsidies are helpful as they provide the right levels of purchasing power to the farmer and can significantly help in raising the standards of living of the rural poor.
2. Sometimes they also lead to the misuse of public funds.
Which of these statements is/are correct?
  • a)
    1 Only
  • b)
    2 Only
  • c)
    Both 1 and 2
  • d)
    Neither 1 nor 2
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Which of the following statements are correct about Direct farm subsi...
  • The developed countries (the USA and Europe) spend huge amounts of their annual budgets on the agriculture, farm and fisheries subsidies.
  • Direct farm subsidies are helpful as they provide the right levels of purchasing power to the farmer and can significantly help in raising the standards of living of the rural poor.
  • They also help in checking the misuse of public funds as they help in the proper identification of the beneficiaries.
Community Answer
Which of the following statements are correct about Direct farm subsi...
Direct farm subsidies are a form of financial assistance given by the government to farmers to support their agricultural activities. Here are the correct statements about Direct farm subsidies:

1. Direct farm subsidies are helpful as they provide the right levels of purchasing power to the farmer and can significantly help in raising the standards of living of the rural poor.

- Direct farm subsidies can provide assistance to farmers who are struggling financially, especially during times of market instability or natural disasters.
- It can also help in increasing the income of farmers, thus improving their standard of living.

2. Sometimes they also lead to the misuse of public funds.

- There have been cases of misuse of direct farm subsidies by some farmers who do not meet the eligibility criteria or by those who use the funds for purposes other than agriculture.
- This can lead to wastage of public funds and can also create an uneven playing field for other farmers who are following the rules.

Therefore, statement 1 is correct as direct farm subsidies can provide the necessary support to farmers and improve their livelihood. However, statement 2 is also correct as there have been instances of misuse of these subsidies.
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Which of the following statements are correct about Direct farm subsidies? 1. Direct farm subsidies are helpful as they provide the right levels of purchasing power to the farmer and can significantly help in raising the standards of living of the rural poor.2. Sometimes they also lead to the misuse of public funds.Which of these statements is/are correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer?
Question Description
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