IDEAS home Printed from https://ideas.repec.org/a/bla/eurcho/v18y2019i1p42-48.html
   My bibliography  Save this article

The Future of US Farm Policy

Author

Listed:
  • Vincent H. Smith
  • Joseph W. Glauber

Abstract

The farm bill is the primary legislative vehicle for federal food and agricultural policies in the United States that is renewed roughly once every five years. Most current farm bill subsidy and other domestic support programmes for agriculture have their origins in legislation introduced in the 1930s to alleviate poverty among farm households during the Great Depression. Although US farm households have enjoyed higher incomes and wealth than the average US family for many years, legislation to support agricultural commodity prices and to increase farm incomes has persisted. A new farm bill offers the US Congress an opportunity to reform agricultural subsidy policies. But if recent history is a guide, what will emerge is likely to resemble much of what was in the 2014 bill. As was the case with that bill, maintaining the status quo will represent a missed opportunity to cut farm subsidies and make agricultural programmes more market oriented, and be unlikely to improve trade relations for the United States in the context of its commitments under current World Trade Organization agreements. In many ways, agricultural policy in the United States seems to be firmly marching back to the past rather than looking to the future. La loi agricole, renouvelée environ tous les cinq ans, est le principal instrument législatif des politiques alimentaires et agricoles fédérales aux États‐Unis. La plupart des subventions de la loi agricole actuelle et des autres programmes de soutien interne à l'agriculture trouvent leur origine dans la législation introduite dans les années 1930 pour réduire la pauvreté des ménages agricoles pendant la Grande Dépression. Bien que depuis de nombreuses années les ménages agricoles américains aient des revenus et une richesse supérieurs à ceux de la famille américaine moyenne, la législation visant à soutenir les prix des produits agricoles et à augmenter les revenus agricoles persiste. Un nouveau projet de loi sur l'agriculture offre au Congrès américain une occasion de réformer les politiques de subventions à l'agriculture. Mais si l'histoire récente est un guide, ce qui va émerger ressemblera probablement en grande partie à ce que contenait le projet de loi de 2014. Comme c’était le cas, le maintien du statu quo représentera une occasion manquée de réduire les subventions agricoles et de rendre les programmes agricoles plus axés sur le marché et il est peu probable que les relations commerciales des États‐Unis s'améliorent dans le cadre des engagements pris dans les accords actuels à l'Organisation mondiale du commerce. À bien des égards, la politique agricole des États‐Unis semble fermement revenir au passé plutôt que de regarder vers l'avenir. Das Agrargesetz der USA (Farm Bill), das etwa alle fünf Jahre erneuert wird, ist das wichtigste gesetzgebende Instrument für die Ernährungs‐ und Agrarpolitik der USA. Die meisten der aktuellen gesetzlichen Agrarsubventionen und andere interne Stützungsprogramme für die Landwirtschaft haben ihren Ursprung in Gesetzen, die in den 1930er Jahren eingeführt wurden, um die Armut der landwirtschaftlichen Haushalte während der Weltwirtschaftskrise zu lindern. Obwohl die US‐Agrarhaushalte seit vielen Jahren über ein höheres Einkommen und Vermögen als eine durchschnittliche US‐Familie verfügen, gibt es weiterhin Gesetze zur Subventionierung der landwirtschaftlichen Rohstoffpreise und zur Steigerung der landwirtschaftlichen Einkommen. Ein neues Agrargesetz böte dem US‐Kongress die Möglichkeit, die Politik der Agrarsubventionen zu reformieren. Wenn aber die jüngste Geschichte ein Wegweiser ist, dann wird das, was dabei herauskäme, wahrscheinlich dem Gesetzesentwurf von 2014 stark ähneln. Wie bei diesem Gesetzentwurf wird die Beibehaltung des Status quo eine verpasste Gelegenheit darstellen, Agrarsubventionen abzubauen und die Förderprogramme stärker marktorientiert zu gestalten. Und es ist zudem unwahrscheinlich, dass sich die Handelsbeziehungen der Vereinigten Staaten im Rahmen ihrer Verpflichtungen aus den laufenden WTO‐Abkommen verbessern würden. In vielerlei Hinsicht scheint die Agrarpolitik in den Vereinigten Staaten entschlossen in die Vergangenheit zurückzukehren und nicht in die Zukunft zu blicken.

Suggested Citation

  • Vincent H. Smith & Joseph W. Glauber, 2019. "The Future of US Farm Policy," EuroChoices, The Agricultural Economics Society, vol. 18(1), pages 42-48, April.
  • Handle: RePEc:bla:eurcho:v:18:y:2019:i:1:p:42-48
    DOI: 10.1111/1746-692X.12223
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1746-692X.12223
    Download Restriction: no

    File URL: https://libkey.io/10.1111/1746-692X.12223?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. David Orden & Carl Zulauf, 2015. "Political Economy of the 2014 Farm Bill," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(5), pages 1298-1311.
    3. repec:aei:rpaper:34533 is not listed on IDEAS
    4. Smith, Vincent H. & Glauber, Joseph & Dismukes, Robert, 2016. "Rent Dispersion in the US Agricultural Insurance Industry:," IFPRI discussion papers 1532, International Food Policy Research Institute (IFPRI).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. David Orden, 2020. "Resilience and Vulnerabilities of the North American Food System during the Covid‐19 Pandemic," EuroChoices, The Agricultural Economics Society, vol. 19(3), pages 13-19, December.
    2. John C. Beghin & Heidi Schweizer, 2021. "Agricultural Trade Costs," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(2), pages 500-530, June.
    3. Matthew Stuart & Cindy Yu & David A. Hennessy, 2023. "The Impact of Stocks on Correlations of Crop Yields and Prices and on Revenue Insurance Premiums using Semiparametric Quantile Regression," Papers 2308.11805, arXiv.org.
    4. Ruggiero Rippo & Simone Cerroni, 2023. "Farmers' participation in the Income Stabilisation Tool: Evidence from the apple sector in Italy," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(1), pages 273-294, February.
    5. Simone Pieralli & Ignacio Pérez Domínguez & Christian Elleby & Thomas Chatzopoulos, 2021. "Budgetary Impacts of Adding Agricultural Risk Management Programmes to the CAP," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(2), pages 370-387, June.
    6. Simone Severini & Cinzia Zinnanti & Valeria Borsellino & Emanuele Schimmenti, 2021. "EU income stabilization tool: potential impacts, financial sustainability and farmer’s risk aversion," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 9(1), pages 1-21, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alia DeLong & Marilyn E. Swisher & Carlene A. Chase & Tracy Irani & Jorge Ruiz-Menjivar, 2023. "The Roots of First-Generation Farmers: The Role of Inspiration in Starting an Organic Farm," Land, MDPI, vol. 12(6), pages 1-20, June.
    2. Boland, Michael A. & Kopka, Christopher J. & Jacobs, Keri L. & Berner, Courtney & Briggeman, Brian C. & Elliott, Matthew & Friend, Diane & Kenkel, Phil & McKee, Greg & Olson, Frayne & Park, John L. & , 2022. "Extension Programming During a Pandemic: The Cooperative Director Foundations Program," Applied Economics Teaching Resources (AETR), Agricultural and Applied Economics Association, vol. 4(2), July.
    3. 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.
    4. Taylor, Mykel R. & Tonsor, Glynn T. & Wilson, Candice, 2017. "Factors Affecting 2014 Farm Bill Commodity Program Enrollment for Kansas Farmers," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258190, Agricultural and Applied Economics Association.
    5. Zulauf, Carl & Orden, David, 2014. "The US Agricultural Act of 2014: Overview and analysis:," IFPRI discussion papers 1393, International Food Policy Research Institute (IFPRI).
    6. Ar. R. T. Hidayat & Corinthias P. M. Sianipar & Shizuka Hashimoto & Satoshi Hoshino & Muhammad Dimyati & Ahmad E. Yustika, 2023. "Personal Cognition and Implicit Constructs Affecting Preferential Decisions on Farmland Ownership: Multiple Case Studies in Kediri, East Java, Indonesia," Land, MDPI, vol. 12(10), pages 1-23, September.
    7. Nitta, Atomu & Yamamoto, Yasutaka & Kondo, Katsunobu & Sawauchi, Daisuke, 2020. "Direct payments to Japanese farmers: Do they reduce rice income inequality? Lessons for other Asian countries," Journal of Policy Modeling, Elsevier, vol. 42(5), pages 968-981.
    8. Susan Godlonton & Manuel A Hernandez & Mike Murphy, 2018. "Anchoring Bias in Recall Data: Evidence from Central America," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 100(2), pages 479-501.
    9. 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.
    10. Heinschink, Karin & Sinabell, Franz & Url, Thomas, 2017. "Elements of an index-based margin insurance – an application to wheat production in Austria," 91st Annual Conference, April 24-26, 2017, Royal Dublin Society, Dublin, Ireland 258625, Agricultural Economics Society.
    11. Fezzi, Carlo & Menapace, Luisa & Raffaelli, Roberta, 2021. "Estimating risk preferences integrating insurance choices with subjective beliefs," European Economic Review, Elsevier, vol. 135(C).
    12. Sankalp Sharma & Cory G. Walters, 2020. "Influence of farm size and insured type on crop insurance returns," Agribusiness, John Wiley & Sons, Ltd., vol. 36(3), pages 440-452, June.
    13. Michael A. Boland & Brian C. Briggeman & Keri Jacobs & Phil Kenkel & Gregory McKee & John L. Park, 2021. "Research Priorities for Agricultural Cooperatives and their Farmer‐Members," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(2), pages 573-585, June.
    14. Delay, Nathan & Chouinard, Hayley & Walters, Cory & Wandschneider, Philip, 2020. "Examining the Role of the Crop Insurance Selling Agent," Cornhusker Economics 307133, University of Nebraska-Lincoln, Department of Agricultural Economics.
    15. Belasco, Eric J. & Smith, Vincent, 2022. "The impact of policy design on payment concentration in Ad-hoc disaster Relief: Lessons from the Market Facilitation and Coronavirus food Assistance programs," Food Policy, Elsevier, vol. 106(C).
    16. Sinabell, Franz & Url, Thomas & Heinschink, Karin, 2017. "Margin Insurance In Agriculture – A Micro Simulation Approach Of Wheat And Hog Production In Austria," 57th Annual Conference, Weihenstephan, Germany, September 13-15, 2017 262154, German Association of Agricultural Economists (GEWISOLA).
    17. Nathan D. DeLay & Hayley H. Chouinard & Cory G. Walters & Philip R. Wandschneider, 2020. "The influence of crop insurance agents on coverage choices: The role of agent competition," Agricultural Economics, International Association of Agricultural Economists, vol. 51(4), pages 623-638, July.
    18. Saed Alizamir & Foad Iravani & Hamed Mamani, 2019. "An Analysis of Price vs. Revenue Protection: Government Subsidies in the Agriculture Industry," Management Science, INFORMS, vol. 65(1), pages 32-49, January.
    19. Belasco, Eric J., 2020. "WAEA Presidential Address: Moving Agricultural Policy Forward: Or, There and Back Again," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 45(3), September.
    20. Gohin, Alex, 2017. "Macroeconomic impacts of the U.S. farm policy: a second best assessment," Conference papers 332819, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:eurcho:v:18:y:2019:i:1:p:42-48. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/eaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.