What is a farm subsidiary?

Farm Subsidiary

The term "subsidiary" when used in relation to farming can mean two entirely different things:

On meaning is a farm created by citizens to produce products for their own use, sell the surplus on the market, and to provide services with their property such as green rural tourism services.

The second meaning refers to a farm whose voting stock is more than 50% controlled by another company, called the parent company. The parent company may or may not be involved with farming and can be foriegn or domestic. The parent company can also represent the same ideals as the subsidiary or their ideals may be in direct conflict.

Here's an example: A company that produces and sells organic seeds and supplies may be a subsidiary of a company that is engaged in bioengineering (genetically modifying crops with genes from other species). Because the company engaged in bioengineering controls over 50% of the stock of the organic seed company, it could pose a conflict of interest between the two companies, with final decisions being made by the parent company.

This type of conflict of interest could also pose questions for the organic grower, who may not want to buy from a company that is a subsidiary of one of the companies engaged in bioengineering.

For a related quesion go here: http://wiki.answers.com/Q/What_is_a_farm_subsidy

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