Not the small farms or the medium sized farms but the very large farms are given subsidies, cost share programs, USDA purchase of their chemical covered produce (then they sell it to your schools, grocery stores and hospitals), tax write offs and USDA promoted/supported markets.
Most of these programs use to support small farms but ever since Raygun, they cut out the small farmer and passed on these subsidies to the rich corporate chemical farmers. By requiring such huge quantities for purchase or contract the little guy can't meet these demands. By requiring standards too perfect, only chemical farmers can produce those specifications.
The corporate chemical farms only have markets to sell their crappy food to because they took those markets away from the small farmer. Small farmers use to produce all the food for schools, grocery stores and hospitals. But then Raygun and his never ending policy changes put an end to enforcement of anti-trust laws. And the small farmer got wiped out.