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

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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.



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