By reducing risk, the government encourages investment and modernization and in theory makes the industry more efficient. The US government subsidies raise the price of corn and soybeans in the US and in the World market. Eventually the supply increases, price go lower.
Countries try to protect their domestic industries from foreign competition.
I skimmed over that in class, because we will get to it next class. New socialism puts more emphasis on social welfare programs and less emphasis on government ownership. Passenger rail traffic is probably inherently inefficient in the US for two reasons. If it were privatized, most of Amtrak would go out of business. Unlike, say the coal or airline industry, some enterprises are natural monopolies.