The new Farm Bill : strengthening subsidized crop insurances and counter cyclical payments - Analysis n°74
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The new American Farm Bill of 2014 gets rid of decoupled payments. On the other hand, counter cyclical safety net programs for revenue or prices are reinforced : reference prices for wheat and corn increase by 32 and 40% . Moreover, public support of the insurance programs is confirmed. Thus, in case of a lasting drop in crop commodity prices, direct payments could increase to higher levels than with the previous Farm Bill. The dairy sector is given a new farmers’ margin guarantee program, as well as a dairy products’ market purchase program. The pooling and monthly minimum price fixing for dairy farmers is extended. Securing the farmers’ activities without compromising the export competitiveness of the agricultural sector seems to be the guiding principle , of the new act.
The notes published in the CEP Analyses series are 4 to 8 pages evaluative or prospective briefs aimed at the general public. Based on research reports, studies, expert opinions or data analysis and statistics, they propose an overview of a topical issue and favor comparative approaches.
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