Summary: Corn growers receive billions of dollars each year in subsidies from the U.S. government. The average American family pays $400 per year to subsidize corn. As a result, corn products and derivatives can be found in many items at American grocery stores. In the video, Professor Daniel J. D'Amico discusses how farm subsidies and other food regulations affect what Americans buy and eat. Regulations can also act as barriers to entry for smaller growers. For example, requirements for marketing food sold in the United States as 'organic' are strenuous. While we may think this means the consumer is better protected from unscrupulous farmers, Prof. D'Amico shows how they form barriers to entry for small farmers. The paperwork and other costs associated with complying with the regulations for organic produce may prove too expensive and time consuming for the small farmer. This, in turn, makes it more difficult to find organic produce locally. Instead of allowing government to regulate and subsidize specific food types or farmers, Prof. D'Amico recommends a freer market. There are too many unintended consequences of food regulations and subsidies, such as price distortion and unfair competition between members of the same industry. A market without these distortions would allow consumers to buy less expensive, healthier food.
