Impact of Farm Subsidies on Food Prices and Consumption

Julian M. Alston, Daniel A. Sumner, Stephen A. Vosti,
Farm subsidies and obesity in the United States: National evidence and international comparisons,
Food Policy,
Volume 33, Issue 6,
2008

Even if eliminating farm subsidies were to increase corn prices by as much as 10% (which is in the high end of the highest estimates) the resulting impact on food prices is minimal. Food price reductions as a result of corn subsidies are around 2% which would imply an increase in consumption as a response to price near .5%. The resulting increase in beef consumption would be .10%.