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Can U.S. Farm Subsidies Be Bought Out?

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  • Orden, David

Abstract

Achieving substantial agricultural trade liberalization has proven elusive in the Doha Round. This paper examines policy reforms the United States might adopt to facilitate progress. The focus is on whether decoupling can be made more convincing through a long-term buyout that would end farm subsidies. Buyouts have not been feasible in the past but recent reforms for several specialty crops provide evidence of what might be done and the conditions under which it occurs. Although the political-economy conditions may not be conducive to such a buyout yet, estimates are provided of the potential cost of a buyout of the main U.S. farm support subsidies of direct fixed and counter-cyclical payments.

Suggested Citation

  • 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).
  • Handle: RePEc:ags:aaea05:19233
    DOI: 10.22004/ag.econ.19233
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    1. Westcott, Paul C. & Young, C. Edwin & Price, J. Michael, 2002. "The 2002 Farm Act: Provisions And Implications For Commodity Markets," Agricultural Information Bulletins 33745, United States Department of Agriculture, Economic Research Service.
    2. Orden, David & Paarlberg, Robert & Roe, Terry, 1999. "Policy Reform in American Agriculture," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226632643, December.
    3. 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).
    4. Carsten Daugbjerg & Alan Swinbank, 2004. "The CAP and EU Enlargement: Prospects for an Alternative Strategy to Avoid the Lock‐in of CAP Support," Journal of Common Market Studies, Wiley Blackwell, vol. 42(1), pages 99-119, February.
    5. Baffes, John & De Gorter, Harry, 2005. "Disciplining agricultural support through decoupling," Policy Research Working Paper Series 3533, The World Bank.
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    Agricultural and Food Policy;

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