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What is a farm subsidiary?

Updated: 9/11/2023
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9y ago

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Farm SubsidiaryThe 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 foreign 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.

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Q: What is a farm subsidiary?
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Asda was founded in 1949 as Associated Dairies and Farm Stores Limited. It became a subsidiary of Walmart in 1999


What does subsidiary mean?

Subsidiary means: 1. a.) furnishing aid or support (ex: subsidiary details) 1. b.) of secondary importance (ex: subsidiary stream) 2.) of, relating to, or constituting a subsidy (ex: a subsidiary payment to an ally)


What do you call a company that owns another company?

A company that owns another is a Parent Company, while the one that is owned by another is a Subsidiary. The Subsidiary may be fully owned or partly owned. To qualify as a Subsidiary, the Parent must hold at least 25% of the shares of the Subsidiary.


Can a subsidiary own shares in its holding company?

If a subsidiary own shares in holding company that would be considered as treasury.


What is subsidiary farming?

Farm SubsidiaryThe 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 foreign 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.