IDEAS home Printed from
   My bibliography  Save this paper

Counter-Cyclical Farm Safety Nets


  • Richardson, James W.
  • Klose, Steven L.
  • Smith, Edward G.


Since the 1920's, the federal government has used an array of farm programs to provide a “safety net” for American agriculture. Farm programs have used price supports, disaster payments, income supports, direct payments, and supply management to provide a safety net for particular markets and producers. This array of farm programs has rarely been organized or managed with the sole purpose of providing a minimum income level to farmers. With the exception of set aside programs, the programs have provided incentives for production and the diversification of production through out the continental United States. While the FAIR Act of 1996 has been generously applauded for allowing producers planting flexibility, maintaining export competitiveness through marketing loan programs, and maintaining production, the Act has been criticized for its lack of a sufficient safety net. All crop insurance programs and marketing loan provisions may be considered safety nets. However, the ad hoc passage of emergency relief in each of the last three years 1998-2000 suggests that these programs have not provided sufficient support to program crop agriculture. The safety net issue, therefore, will likely be a major source of debate in crafting the next farm bill. Can the U.S. government reduce the liquidity problem facing major crop agriculture while pressing the popular provisions of the FAIR Act? Developing a whole farm safety net proposal is one alternative being studied.

Suggested Citation

  • Richardson, James W. & Klose, Steven L. & Smith, Edward G., 2001. "Counter-Cyclical Farm Safety Nets," Policy Issues Papers 42779, Texas A&M University, Agricultural and Food Policy Center.
  • Handle: RePEc:ags:tamfip:42779

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Adams, Gary M. & Richardson, James W., 2001. "Exploring Options for a New Farm Bill," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 33(02), pages 261-270, August.
    2. repec:ags:joaaec:v:33:y:2001:i:2:p:261-270 is not listed on IDEAS
    3. Adams, Gary M. & Richardson, James W., 2001. "Exploring Options For A New Farm Bill," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 33(02), August.
    4. Chad E. Hart & Bruce A. Babcock, 2000. "Counter-Cyclical Agricultural Program Payments: Is It Time to Look at Revenue?," Center for Agricultural and Rural Development (CARD) Publications 99-bp28, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Agricultural and Food Policy;


    Access and download statistics


    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:ags:tamfip:42779. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.