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US farm support under a Biden administration: Plus ça change, plus c'est la même chose?

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  • Joseph W. Glauber
  • Vincent H. Smith

Abstract

During the Trump administration, there has been an unprecedented increase in the level of domestic support provided to US agricultural producers. Direct farm supports, including price and income support payments, federal crop insurance, and supplemental assistance to compensate losses due to the trade war with China and the pandemic, have accounted for more than one‐third of net farm income. Those payments have threatened to push the United States over its World Trade Organization (WTO) domestic support obligations and increased its vulnerability to potential dispute settlement challenges in the WTO. The incoming Biden administration will likely bring a new focus to repurpose farm subsidies to provide environmental benefits, such as reduced greenhouse gas emissions, but to achieve those reforms they will need to convince a US Congress that has historically been prone to maintaining the status quo. Sous l'administration Trump, il y a eu une augmentation sans précédent du niveau de soutien interne fourni aux producteurs agricoles américains. Les soutiens agricoles directs, y compris les paiements de soutien des prix et du revenu, l'assurance‐récolte fédérale et l'aide supplémentaire pour compenser les pertes dues à la guerre commerciale avec la Chine et à la pandémie, ont représenté plus du tiers du revenu agricole net. Ces versements ont passé près de dépasser les obligations des États‐Unis concernant le soutien interne permis à l'OMC et ont accru leur vulnérabilité face à d'éventuelles disputes de règlement des différends à l'OMC. La nouvelle administration Biden apportera probablement un nouvel objectif dans l'utilisation des subventions agricoles pour fournir des avantages environnementaux tels que la réduction des émissions de gaz à effet de serre. Mais pour réaliser ces réformes, la nouvelle administration devra convaincre un Congrès américain qui a toujours été enclin à maintenir le statu quo.

Suggested Citation

  • 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.
    • Handle: RePEc:bla:canjag:v:69:y:2021:i:1:p:37-43
    DOI: 10.1111/cjag.12265
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    References listed on IDEAS

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    1. Glauber, Joseph W., 2019. "Negotiating agricultural trade in a new policy environment:," IFPRI discussion papers 1831, International Food Policy Research Institute (IFPRI).
    2. Vincent H. Smith & Joseph W. Glauber, 2012. "Agricultural Insurance in Developed Countries: Where Have We Been and Where Are We Going?," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 34(3), pages 363-390.
    3. Vincent H. Smith & Joseph W. Glauber, 2012. "Agricultural Insurance in Developed Countries: Where Have We Been and Where Are We Going?," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 34(3), pages 363-390.
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    Cited by:

    1. 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.

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