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2012 Spring - Farm subsidies to continue, despite the crisis?

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Farm Policy Journal - Vol 9 No 3 2012 Spring - Full Journal - Farm subsidies to continue, despite the crisis?

Australian Farm Institute (2012), Farm subsidies to continue, despite the crisis?, Farm Policy Journal: Vol 9 Number 3 - Sping 2012
ISSN 1449–2210 (Print)
ISSN 1449–8812 (Web)


FPJ0903C - Potard & Halle; A brief background to the US Farm BiIl and the EU Common Agricultural Policy

The United States (US) and the European Union (EU) are two of the world’s largest agricultural producers and both are in the process of changing their main agricultural policies. This paper summarises the main features of both these policies and details agricultural trade between Australia and the US and the EU, which highlights the importance of farm policies in both locations for Australian agriculture.


FPJ0903D - Westhoff & Gerlt - The US Farm Bill: Possible impacts on commodity markets

A new farm bill could significantly restructure United States (US) farm policy. Bills approved by the US Senate and the Agriculture Committee of the US House of Representatives would reduce and significantly reorient farm program spending.  Both bills would eliminate the direct payment program, which makes US$5 billion in annual payments that are not tied to current production levels or market prices. Some of the budget savings are then used to create new programs, each of which provides benefits that are linked to actual production and market prices.


FPJ0903E - Outlaw et al - The US Farm Bill and implications for international competitiveness

The United States (US) House of Representatives and Senate have spent a year developing their own farm bills to replace the current farm bill. Both farm bills drop direct payments and counter-cyclical payments (CCP) and create new farm program tools for providing a safety net for farmers. A risk based simulation analysis of the two farm programs for 64 representative US crop farms was used to project farmers’ preferences for the two farm bills. Results of the analysis suggest that  all crop farmers would prefer the House farm bill over the Senate bill. Under high prices neither farm program will provide much support so their impact on competitiveness would be minimal and certainly less than the current farm program with  its direct payments and CCP. On the other hand, under a persistent low price scenario US producers would be provided substantially more support in the House Bill making them much more resilient.


FPJ0903F - Mercier - External factors that are driving the 2012 US Farm Bill debate

As with any policy-making process, the final product of the current farm bill debate in the United States (US), intended to culminate in 2012 by the time the Food, Conservation, and Energy Act of 2008 expires, will reflect a combination of  external forces and internal policy trade-offs. The range of issues covered in farm bills continue to expand far beyond traditional farm and commodity policy, a trend that started in the 1970s with the arrival of domestic nutrition assistance programs. This paper focuses on the key external factors that are generated within the US, specifically the impact of the changing political, demographic, and budgetary environments.


FPJ0903G - Santini & Paloma - The New European Common Agricultural Policy and the Food Chain

Since the peak food prices of 2007–08, European Union agricultural policy measures aimed at rebalancing the food chain in favour of the agricultural sector have gained importance in the policy debate. Rules are diverging from standard competition policy in order to counterbalance the concentration of the food retail and food industry sectors. Furthermore, incentives for high value added product supply chains have been proposed with hope that the policies improve functioning of the European food chain.


FPJ0903H - Harvey - How Green will the CAP be post 2013?

The European Union is currently negotiating changes to the Common Agricultural Policy (CAP) to apply for the period 2014–20, on the basis of the European Commission’s proposals. For the first time, under the European Union’s Lisbon Treaty, the final policy decision will be made jointly by both the Council of Ministers and the European Parliament. This paper outlines the policy’s history which explains its current state, and examines the Commission’s proposals, especially in the light of the European budgetary framework and the co-decision process. It concludes that there is little prospect for any substantial change in the present policy.


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