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The US Agricultural Act of 2014: Overview and analysis:

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  • Zulauf, Carl
  • Orden, David

Abstract

This paper summarizes the evolutionary trends in US farm policy that have culminated in the 2014 farm bill, describes the new farm bill programs in depth, and highlights the key policy issues that arise and will play out over its planned five-year duration. This new US farm bill eliminates fixed direct payments made to farmers since 1996. In place of those payments, the 2014 farm bill strengthens protections against downside price and revenue risks. Crop insurance is enhanced as a pillar of the US farm safety net. In addition, new programs are enacted to address two types of loss: shallow losses that coincide with the deductible on individual farm insurance and losses resulting from multiple years of low prices or declining revenue that are not covered by insurance. Because of the lack of consensus on the design of assistance programs for such risks, farmers are given choices among several program options. The strengthened safety net will result in less certain annual support payments to farmers, with spending that could prove lower or higher than had the 2014 farm bill not been enacted.

Suggested Citation

  • Zulauf, Carl & Orden, David, 2014. "The US Agricultural Act of 2014: Overview and analysis:," IFPRI discussion papers 1393, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:ifprid:1393
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    References listed on IDEAS

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    1. David Orden & Carl Zulauf, 2015. "Political Economy of the 2014 Farm Bill," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(5), pages 1298-1311.
    2. Schnitkey, Gary, 2012. "Crop Insurance in 2012," farmdoc daily, University of Illinois at Urbana-Champaign, Department of Agricultural and Consumer Economics, vol. 2, July.
    3. 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, January.
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    6. Zulauf, Carl & Coppess, Jonathan & Schnitkey, Gary & Paulson, Nick, 2014. "2014 Farm Bill Decisions: Payment Limits and Adjusted Gross Income Eligibility," farmdoc daily, University of Illinois at Urbana-Champaign, Department of Agricultural and Consumer Economics, vol. 4, pages 1-4, August.
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    11. Zulauf, Carl & Schnitkey, Gary, 2014. "2014 Farm Bill: Making the Case for Looking at ARC-Individual Farm," farmdoc daily, University of Illinois at Urbana-Champaign, Department of Agricultural and Consumer Economics, vol. 4, June.
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    14. Paulson, Nick & Coppess, Jonathan & Schnitkey, Gary & Kuethe, Todd, 2014. "2014 Farm Bill Decisions: Payment Yield Update Option," farmdoc daily, University of Illinois at Urbana-Champaign, Department of Agricultural and Consumer Economics, vol. 4, July.
    15. Claassen, Roger & Carriazo, Fernando & Cooper, Joseph C. & Hellerstein, Daniel & Ueda, Kohei, 2011. "Grassland to Cropland Conversion in the Northern Plains: The Role of Crop Insurance, Commodity, and Disaster Programs," Economic Research Report 262239, United States Department of Agriculture, Economic Research Service.
    16. Zulauf, Carl, 2014. "2014 Farm Bill: the Big Picture As Seen Through Spending," farmdoc daily, University of Illinois at Urbana-Champaign, Department of Agricultural and Consumer Economics, vol. 4, May.
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    Cited by:

    1. Bulut, Harun, 2017. "Managing Catastrophic Risk in Agriculture through Ex Ante Subsidized Insurance or Ex Post Disaster Aid," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 42(3), September.

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