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The federal government spends more than $20 billion a year on subsidies for farm businesses. About 39 percent of the nation's 2.1 million farms receive subsidies, with the lion's share of the handouts going to the largest producers of corn, soybeans, wheat, cotton, and rice.1
The government protects farmers against fluctuations in prices, revenues, and yields. It subsidizes their conservation efforts, insurance coverage, marketing, export sales, research, and other activities. Federal aid for crop farmers is deep and comprehensive.
However, agriculture is no riskier than many other industries, and it does not need an array of federal subsidies. Farm subsidies are costly to taxpayers, but they also harm the economy and the environment. Subsidies discourage farmers from innovating, cutting costs, diversifying their land use, and taking other actions needed to prosper in the competitive economy.
Option D
Such taxes should be recognized as A deferred inflow of resources
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Explanation:</u></h3>
The deferred inflow of resources is an addition of net assets by the government that pertains to a scheduled reporting period. For case, deferred income and advance collections. It should be announced as a separate part following responsibilities in the report of financial position.
Marketing of future revenues, Property taxes collected, Specific assessments are beneath the deferred inflow of resources. Deferred inflows of resources at the close of the reporting period, that part should be added in the likewise net position component as the unspent amount.
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