Political Economy of the 2014 Farm Bill

This article assesses the political economy of the 2014 U.S. farm bill, with a focus on the farm support safety net. The farm bill secured substantial bipartisan majorities in a politically contentious Congress. Planned outlays are predominately for nutrition assistance programs directed toward a tr...

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Veröffentlicht in:American journal of agricultural economics 2015-10, Vol.97 (5), p.1298-1311
Hauptverfasser: Orden, David, Zulauf, Carl
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Zulauf, Carl
description This article assesses the political economy of the 2014 U.S. farm bill, with a focus on the farm support safety net. The farm bill secured substantial bipartisan majorities in a politically contentious Congress. Planned outlays are predominately for nutrition assistance programs directed toward a traditional nonfarm constituency in the farm bill coalition, while annual fixed direct payments to farmers are eliminated but replaced with enhanced downside risk protection against low prices or revenue. The new support programs may prove more or less costly than the foregone fixed payments, with farmers offered a choice between a price countercyclical program with increased reference prices and a revised moving-average revenue guarantee program. The role of insurance is enhanced, notably by replacing past support programs with a new upland cotton revenue insurance program and dairy milk-to-feed margin protection program. Open policy issues that are highlighted include the costs and distortionary effects of moving-average revenue benchmarks versus fixed reference prices, the overall level of insurance premium subsidies, the potential for overlap between commodity and insurance programs, and lastly, food, environmental, and biofuels concerns that reflect the diverse portfolio of products demanded from agriculture. In an international context, we conclude that the 2014 farm safety net likely would not have been enacted had multilateral agreement been reached on the 2008 Doha Round World Trade Organization negotiating documents. Conversely, the 2014 farm bill makes achieving those limits more difficult. Research is discussed that can elucidate the ongoing political economy of U.S. farm policy and help shape future program design.
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source EBSCOhost Business Source Complete; Access via Wiley Online Library; JSTOR
subjects 2014 farm bill
Agricultural Act of 2014
Agricultural economics
Agricultural policy
Agricultural subsidies
Bills
commodity programs
conservation
crop insurance
Farmers
Invited Conference Papers
policy research agenda
Political economy
Prices
Studies
Supplemental Nutrition Assistance Program (SNAP)
U.S. farm subsidies
United States
World Trade Organization (WTO)
title Political Economy of the 2014 Farm Bill
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