Explain how a subsidy paid to soybean farmers affects the consumer surplus and the producer surplus from soybean. Does the subsidy make the soybean market more efficient or less efficient?

Explain.

In 2016, 25 percent of an estimated $55 billion farm profit will come from government. Since 2012, global corn and soybean output has increased faster than demand and prices have tumbled. The subsidies law of 2014 ties subsidies to prices—low prices trigger high subsidies.