The removal of subsidies, while causing significant repercussions for farmer income in the US, would
- info27725
- May 9, 2015
- 1 min read
The removal of subsidies, while causing significant repercussions for farmer income in the US, would not reduce overall US production in a timely fashion or result in substantially higher prices either domestically or on the world market. This study has identified and conducted a preliminary analysis of a set of policy instruments with potential to increase market prices to a reasonable and sustainable level and effectively manage the excess capacity in US agriculture. This set include a combination of (1) acreage diversion through short-term acreage set-asides and longer-term acreage reserves; (2) a farmer-owned food security reserve; and (3) price supports.
Source: "Executive Summary," Rethinking US Agricultural Policy: Changing Course to Secure Farmer Livelihoods Worldwide, September 2003, 5