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| Babcock, Bruce A.; Hart, Chad E.. |
| Critics of the U.S. proposal to the World Trade Organization (WTO) made in October 2005 are correct when they argue that adoption of the proposal would significantly reduce available support under the current farm program structure. Using historical prices and yields from 1980 to 2004, we estimate that loan rates would have to drop by 9 percent and target prices would have to drop by 10 percent in order to meet the proposed aggregate Amber Box and Blue Box limits. While this finding should cheer those who think that reform of U.S. farm programs is long overdue, it alarms those who want to maintain a strong safety net for U.S. agriculture. The dilemma of needing to reform farm programs while maintaining a strong safety net could be resolved by redesigning... |
| Tipo: Working or Discussion Paper |
Palavras-chave: Farm safety net; Revenue targeting; U.S. farm programs; WTO; International Relations/Trade. |
| Ano: 2005 |
URL: http://purl.umn.edu/18284 |
