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Trends in US Agricultural Policy since 2000 and Implications for the Next Twenty Years

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  • Joseph Glauber
  • Vince Smith

Abstract

Over the past 20 years, US agricultural policy has primarily served the interests of farm organisations whose members operate relatively large enterprises and the concerns of environmental and conservation lobbies about soil, water quality, wildlife quality and access to public lands. While maintaining the same underlying focus, over the past twenty years US agricultural policy has shifted from decoupled income support to price‐ and revenue‐based counter‐cyclical subsidy programmes, increased the coverage under a plethora of heavily subsidised agricultural insurance initiatives, and expanded the scope of conservation programmes. Further, between 2018 and 2020, there were unprecedented levels of additional spending through ad hoc measures to compensate producers for losses sustained as a result of the Trump administration’s trade wars and, more recently, losses attributed to the coronavirus pandemic. These levels of spending have been criticised as excessive relative to actual losses and likely caused the United States to violate its WTO domestic support commitments. However, US agricultural subsidy initiatives could soon involve more changes. The Biden administration wants to refocus some agricultural expenditure towards reducing greenhouse gas emissions and addressing concerns about the lack of financial support for minority groups, but probably not at the expense of funding for current programmes. Au cours des 20 dernières années, la politique agricole américaine a principalement servi les intérêts des organisations agricoles dont les membres exploitent des entreprises relativement grandes ainsi que les préoccupations des lobbies de l'environnement et de la conservation concernant le sol, la qualité de l'eau, la qualité de la faune et l'accès aux terres publiques. Tout en conservant la même orientation sous‐jacente, au cours des vingt dernières années, la politique agricole des États‐Unis est passée d'un soutien des revenus découplé à des programmes de subventions contracycliques fondés sur les prix et les recettes, a élargi la couverture d'une pléthore d'initiatives d'assurance agricole fortement subventionnées et a étendu la portée des programmes de conservation. De plus, entre 2018 et 2020, les dépenses supplémentaires ont atteint des niveaux sans précédent par le biais de mesures ad hoc visant à compenser les producteurs pour les pertes subies à la suite des guerres commerciales de l'administration Trump et, plus récemment, pour celles attribuées à la pandémie de coronavirus. Ces niveaux de dépenses ont été critiqués comme étant excessifs par rapport aux pertes réelles et ont probablement amené les États‐Unis à violer leurs engagements de soutien interne dans le cadre de l'OMC. Cependant, les initiatives américaines de subventions agricoles pourraient bientôt comprendre davantage de changements. L'administration Biden veut recentrer certaines dépenses agricoles vers la réduction des émissions de gaz à effet de serre et répondre aux préoccupations concernant le manque de soutien financier aux groupes de minorités, mais probablement pas au détriment du financement des programmes actuels. In den letzten zwanzig Jahren diente die US‐Agrarpolitik in erster Linie den Interessen von Landwirtschaftsorganisationen, deren Mitglieder relativ große Betriebe bewirtschaften. Außerdem nahm sich die Politik der Anliegen von Umwelt‐ und Naturschutzverbänden in Bezug auf Böden, Wasserqualität, Zustand der Wildtiere und Zugang zu öffentlichen Flächen an. Unter Beibehaltung des gleichen Schwerpunkts hat sich die US‐Agrarpolitik in den letzten zwanzig Jahren von der entkoppelten Einkommensstützung hin zu preis‐ und ertragsbasierten antizyklischen Förderprogrammen verlagert. Des Weiteren hat sie die Versicherungsdeckung durch eine Fülle an stark subventionierten landwirtschaftlichen Versicherungsprogrammen erhöht und den Umfang der Naturschutzprogramme erweitert. Zwischen den Jahren 2018 und 2020 wurden zudem zusätzliche Ausgaben in noch nie dagewesener Höhe in Form von Sofortmaßnahmen getätigt. Sie wurden für die Entschädigung von landwirtschaftlichen Betrieben für Verluste eingesetzt, die ihnen durch die Handelskriege der Trump‐Regierung und in jüngster Zeit durch die Corona‐Pandemie entstanden sind. Diese Ausgaben wurden im Hinblick auf die tatsächlich entstandenen Verluste als überzogen kritisiert und haben vermutlich dazu geführt, dass die Vereinigten Staaten gegen ihre WTO‐Verpflichtungen zur internen Stützung verstoßen haben. Die US‐Agrarsubventionen könnten jedoch bald weiteren Anpassungen unterliegen: Die Biden‐Regierung will einen Teil der Agrarausgaben für die Reduzierung der Treibhausgasemissionen und für die Beseitigung von Mängeln bezüglich der finanziellen Unterstützung von Minderheiten verwenden. Dieses aber voraussichtlich nicht auf Kosten der Finanzierung von laufenden Programmen.

Suggested Citation

  • Joseph Glauber & Vince Smith, 2021. "Trends in US Agricultural Policy since 2000 and Implications for the Next Twenty Years," EuroChoices, The Agricultural Economics Society, vol. 20(2), pages 58-63, August.
  • Handle: RePEc:bla:eurcho:v:20:y:2021:i:2:p:58-63
    DOI: 10.1111/1746-692X.12329
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    References listed on IDEAS

    as
    1. Joseph W. Glauber & Vincent H. Smith, 2021. "US farm support under a Biden administration: Plus ça change, plus c'est la même chose?," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 69(1), pages 37-43, March.
    2. Joseph W. Glauber, 2021. "US Trade Aid Payments and the WTO," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(2), pages 586-603, June.
    3. Anton Bekkerman & Eric J Belasco & Vincent H Smith & Chris McIntoshEditor, 2019. "Does Farm Size Matter? Distribution of Crop Insurance Subsidies and Government Program Payments across U.S. Farms," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 41(3), pages 498-518.
    4. Daniel A. Sumner & Julian M. Alston & Joseph W. Glauber, 2010. "Evolution of the Economics of Agricultural Policy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(2), pages 403-423.
    5. Vincent H. Smith & Barry K. Goodwin, 2013. "The Environmental Consequences of Subsidized Risk Management and Disaster Assistance Programs," Annual Review of Resource Economics, Annual Reviews, vol. 5(1), pages 35-60, June.
    6. David Blandford & Alan Matthews, 2019. "EU and US Agricultural Policies: Commonalities and Contrasts," EuroChoices, The Agricultural Economics Society, vol. 18(1), pages 4-10, April.
    7. Anton Bekkerman & Eric J. Belasco & Vincent H. Smith, 2019. "Does Farm Size Matter? Distribution of Crop Insurance Subsidies and Government Program Payments across U.S. Farms," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(3), pages 498-518, September.
    8. Erik Lichtenberg, 2019. "Conservation and the Environment in US Farm Legislation," EuroChoices, The Agricultural Economics Society, vol. 18(1), pages 49-55, April.
    9. Glauber, Joseph W. & Effland, Anne, 2016. "United States agricultural policy: Its evolution and impact:," IFPRI discussion papers 1543, International Food Policy Research Institute (IFPRI).
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