Goverment want to follow a policy of increasing income, what type of program will they use?
Answer:
They're already pouring tons of money into ADM, in the forms of (as already mentioned and ) tariffs on imported farm goods, as well as subsidies for anything having to do with ethanol (price supports plus tariffs), plus allowing high-fructose corn syrup as a direct substitute for sugar (which has a price support and a tariff).
What that does, of course, is give ADM and one or two others oligopoly power, thus costing Americans more for food and keeping other farm competition out, while maintaining governmental power over our very food supply.
Why does government have the moral authority (or the smarts, for that matter) to dictate what should be produced, by whom, in what amounts, and for what prices? Stalin tried that, and as I recall, it wasn't such a good idea. Maybe it has to do with the brain-power of the dictator... Yeah, that's it for sure.
They could give farmers direct subsidies or they could establish floor prices for farm goods (at the farm gate).
Force them to reduce output by a bit. Since demand is inelastic, prices go up by a lot, so overall effect is the increase in profits.
Price floor would achieve same goal, but is kinda hard to enforce - you can't prevent a farmer from selling extra produce from roadside stand.
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