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Question: Crop Prices Erode Farm Subsidy Program High corn and soybean prices mean farmers are making the most money in their lives. The reason: Grain prices are far too high to trigger payouts under the U.S. primary farm-subsidy program's "price support" formula. The market has done what Congress couldn't do and that is "slash farm subsidies."
a. Why are U.S. soybean farmers subsidized?
b. Explain how a subsidy paid to soybean farmers affects the price of soybean and the marginal cost of producing it.
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