Political Economy Of The 2014 Farm Bill

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dc.contributor.authorOrden, David R.en
dc.contributor.authorZulauf, Carlen
dc.contributor.departmentAgricultural and Applied Economicsen
dc.contributor.departmentGlobal Issues Initiativeen
dc.date.accessioned2020-02-19T20:18:35Zen
dc.date.available2020-02-19T20:18:35Zen
dc.date.issued2015-06-11en
dc.description.abstractThis 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.en
dc.identifier.doihttps://doi.org/10.1093/ajae/aav028en
dc.identifier.issue5en
dc.identifier.urihttp://hdl.handle.net/10919/96941en
dc.identifier.volume97en
dc.language.isoenen
dc.publisherOxford University Pressen
dc.relation.ispartofJEL codes: K33, N52, Q17, Q18, Q28en
dc.rightsCreative Commons Attribution-NonCommercial 4.0 Internationalen
dc.rights.urihttp://creativecommons.org/licenses/by-nc/4.0/en
dc.subjectAgricultural Act of 2014en
dc.subjectagricultural policyen
dc.subjectcommodity programsen
dc.subjectcrop insuranceen
dc.subjectconservationen
dc.subjectpolicy research agendaen
dc.subjectSupplemental Nutrition Assistance Program (SNAP)en
dc.subject2014 farm billen
dc.subjectU.S. farm subsidiesen
dc.subjectWorld Trade Organization (WTO)en
dc.titlePolitical Economy Of The 2014 Farm Billen
dc.title.serialAmerican Journal of Agricultural Economicsen
dc.typeArticle - Refereeden
dc.type.dcmitypeTexten

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