The Farm Lobby Is One of the Most Influential Lobby

question 91

Essay

The farm lobby is one of the most influential lobby groups in the United States, with each crop bringing its own constituency. Explain why farmers are so willing to spend so much money (an estimated $10 million in campaign contributions in the last election) to protect their subsidies. Who stands to gain the most from farm subsidies-the farmers or the consumers of agriculture? Explain.

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Definitions:

Interest Payable

A liability account showing the amount of interest expense that has been incurred but not yet paid as of the balance sheet date.

Equity Method

An accounting technique used to record an investor's earnings in proportion to their ownership stake in a company.

Periodic Net Income

Periodic net income refers to the total earnings of a company, after accounting for all expenses and taxes, over a specific financial reporting period.

Brokerage Fees

Charges that are paid to a broker for executing transactions or providing specialized services.