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Fact check: When you include the bailouts that the US government gives its farming industry, the US subsidizes its farming industry more than EU

Checked on March 5, 2025

1. Summary of the results

The claim that US farm subsidies exceed EU subsidies when including bailouts requires careful contextual analysis. The EU consistently provides approximately €40 billion in agricultural subsidies annually [1], while US subsidies have shown significant variation. Standard US farm subsidies typically amount to around $20-30 billion annually [1], but during exceptional circumstances like 2020, total support including bailouts reached over $50 billion [2]. In normal years, government payments represented about 20.4% of total US farm profits as of 2019 [3].

2. Missing context/alternative viewpoints

Several important contextual factors are worth considering:

  • The EU dedicates nearly 40% of its total budget to agricultural subsidies [1]
  • US farm subsidies have shown dramatic historical fluctuation, ranging from just $1.5 billion in 1949 to $32.1 billion in 2000 [3]
  • The distribution of US subsidies is not uniform across the agricultural sector - livestock, dairy, and animal feed producers receive the largest share of support [2]

3. Potential misinformation/bias in the original statement

The original statement makes a broad generalization that doesn't account for:

  • The temporal nature of subsidies - while the statement might be true for exceptional years like 2020, it doesn't reflect typical circumstances
  • Currency conversion factors - the statement compares euros and dollars without accounting for exchange rates
  • Different measurement methodologies between the US and EU systems
  • Political interests - Both US and EU agricultural sectors have powerful lobbying groups that benefit from portraying their respective regions as receiving less support than their competitors, potentially influencing how these figures are presented and interpreted

The comparison requires more detailed analysis of both regions' complete agricultural support systems, including indirect subsidies, tax benefits, and other forms of government assistance to make a truly accurate comparison.

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