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Perspectives On Impacts Of The 2002 U.S. Farm Act

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  • Westcott, Paul C.

Abstract

The Farm Security and Rural Investment Act of 2002 (2002 Farm Act) was enacted in the United States in May of 2002. While this new farm law introduced some new policies to the array of agricultural commodity programs, in many ways the 2002 farm act extended provisions of the 1996 farm act and institutionalized provisions of ad hoc emergency spending bills of 1998-2001. Three key commodity program features of the 2002 farm act are marketing assistance loans, counter-cyclical payments, and direct payments. Marketing assistance loans existed under previous U.S. farm law, direct payments replaced production flexibility contract payments of the 1996 farm act, and counter-cyclical payments are intended to institutionalize the market loss assistance payments of the past several years. This paper discusses these U.S. farm programs and some of their potential impacts on agricultural markets. An overview of these programs features is first presented, along with an illustration of a con farm's sources of revenues under the new farm act. Then a discussion of some of the impacts of the 2002 farm act is given, commenting on the FAPRI analysis presented by John Kruse. Additional potential impacts of marketing loan provisions of the new law are then discussed, followed by some general comments on potential impacts of counter-cyclical payments, direct payments, and selected additional provisions of the legislation.

Suggested Citation

  • Westcott, Paul C., 2003. "Perspectives On Impacts Of The 2002 U.S. Farm Act," Proceedings of the 9th Agricultural and Food Policy Systems Information Workshop, 2003: Farm Policy Development and Policy Tensions under NAFTA 16816, Farm Foundation, Agricultural and Food Policy Systems Information Workshops.
    • Handle: RePEc:ags:ffaf03:16816
    DOI: 10.22004/ag.econ.16816
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    1. Westcott, Paul C. & Price, J. Michael, 2001. "Analysis Of The U.S. Commodity Loan Program With Marketing Loan Provisions," Agricultural Economic Reports 34035, United States Department of Agriculture, Economic Research Service.
    2. Kruse, John R., 2003. "Implications Of The 2002 U.S. Farm Act For World Agriculture," Proceedings of the 9th Agricultural and Food Policy Systems Information Workshop, 2003: Farm Policy Development and Policy Tensions under NAFTA 16808, Farm Foundation, Agricultural and Food Policy Systems Information Workshops.
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    Cited by:

    1. Cabanilla, Liborio S., 2006. "Agricultural Trade Between the Philippines and the US: Status, Issues and Prospects," Discussion Papers DP 2006-05, Philippine Institute for Development Studies.
    2. Liborio S. Cabanilla, 2006. "Agricultural Trade Between the Philippines and the US : Status, Issues and Prospects," Development Economics Working Papers 22620, East Asian Bureau of Economic Research.

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