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Agricultural policy reform in the United States: an unfinished agenda

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  • Stuart, Kimberly
  • Runge, C. Ford

Abstract

The 1996 Federal Agriculture Improvement and Reform Act (FAIR) contained important breaks with a tradition of crop-by-crop subsidies dating back to the Agricultural Adjustment Act of 1933. Farmers with recorded base acres were given the opportunity (which nearly all accepted) to sign a seven-year `contract' with the US Department of Agriculture (USDA), under which payments will be continued on the merged base acres on a declining schedule until the year 2002. FAIR is an unfinished agenda. First, the coverage of `freedom to farm' is only partial, with numerous commodities left out of the decoupling programme. Second, the largest producers will augment their already significant receipts with generous lump sum transfers from USDA. This will further reinforce the concentration of roughly 90 per cent of receipts and payments in the hands of the 100 000 to 200 000 largest producers of field crops. An alternative would be to make payments in times of low marketing receipts which recede when prices are high.

Suggested Citation

  • Stuart, Kimberly & Runge, C. Ford, 1997. "Agricultural policy reform in the United States: an unfinished agenda," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 41(1), pages 1-20.
    • Handle: RePEc:ags:aareaj:118010
    DOI: 10.22004/ag.econ.118010
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    References listed on IDEAS

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    1. Orden, David & Paarlberg, Robert L. & Roe, Terry L., 1996. "A Farm Bill for Booming Commodity Markets," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 11(2), pages 1-4.
    2. Vande Kamp, Philip R. & Runge, C. Ford, 1994. "Trends and Developments in United States Agricultural Policy: 1993-1995," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 62(03), pages 1-19, December.
    3. Orden, David & Paarlberg, Robert L. & Roe, Terry L., 1996. "Can Farm Policy Be Reformed? Challenge of the Freedom to Farm Act," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 11(1), pages 1-6.
    4. Van der Sluis, Evert & Peterson, Willis L. & Kinsey, Jean D. & Gabe, Todd, 1994. "Minnesota Agricultural Economist no. 677," Minnesota Applied Economist\Minnesota Agricultural Economist 206494, University of Minnesota, Department of Applied Economics.
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    Cited by:

    1. Guyomard, Herve & Bureau, Jean-Christophe & Gohin, Alexandre & Le Mouel, Chantal, 2000. "Impact of the 1996 US FAIR Act on the Common Agricultural Policy in the World Trade Organisation context: the decoupling issue," Food Policy, Elsevier, vol. 25(1), pages 17-34, February.

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    Keywords

    Agricultural and Food Policy;

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