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U.S. agricultural policy: The 2002 Farm Bill and WTO DOHA Round proposal

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  • Orden, David

Abstract

The 2002 U.S. farm bill has been widely criticized for increasing subsidies with detrimental effects on competing agricultural producers abroad and for undermining U.S. leadership in achieving liberalized world agricultural trade. This paper provides an assessment that shows the 2002 bill has effects that are nuanced in at least four respects. It raises expenditures compared to 1996 legislation, but not compared to actual 1998-2001 outlays. It maintains planting flexibility, but extends support to new crops and undermines some of the decoupling of subsidy payments from production and market prices that had occurred. It violates the spirit of U.S. trade liberalization rhetoric, but probably not the letter of U.S. WTO commitments. And it continues the policies of wealthy countries that collectively distort agricultural production and world prices, but only marginally worsen the net effects of these policies.

Suggested Citation

  • Orden, David, 2003. "U.S. agricultural policy: The 2002 Farm Bill and WTO DOHA Round proposal," TMD discussion papers 109, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:tmddps:109
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    Cited by:

    1. El-Osta, Hisham S. & Morehart, Mitchell J., 2009. "Welfare Decomposition in the Context of the Life Cycle of Farm Operators: What Does a National Survey Reveal?," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 38(2), pages 1-17, October.
    2. Tyner, Wallace E. & Jacquet, Florence & Gray, Allan W., 2005. "Farm Income Stabilization: A Central Goal for American and European Policies," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24683, European Association of Agricultural Economists.
    3. Choe, Young Chan & Koo, Won W., 1993. "Monetary Impacts On Prices In The Short And Long Run: Further Results For The United States," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 18(2), pages 1-14, December.
    4. Orden, David, 2005. "Can U.S. Farm Subsidies Be Bought Out?," 2005 Annual meeting, July 24-27, Providence, RI 19233, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Hewitt, Joanna, 2008. "Impact evaluation of research by the International Food Policy Research Institute on agricultural trade liberalization, developing countries, and WTO's Doha negotiations:," Impact assessments 28, International Food Policy Research Institute (IFPRI).

    More about this item

    Keywords

    World Trade Organization ; United States ; Agriculture and state ; Prices Government policy ;
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