抄録
This study aims to present the negative effects of subsidies that support farm businesses under a rapidly changing farm environment. First, subsidies are categorized into three types depending on their purpose: subsidies supporting preparation cost, those supporting initial investment, and those supporting variable cost. Second, a case study of small family farm in the US is adopted to discuss this issue. The conclusions of this paper are as follows. First, subsidies that are used for various purposes can be effective, depending on the ability of the beneficiaries to promote their new operations. Second, subsidies that are used to support initial investment as that on machines or facilities may have a negative effect on the farmer’s ability to adapt to a change in the environment. Finally, subsidies supporting variable cost are expected to work effectively.
