Choices Theme: Available Now

The 2014 Farm Bill introduced a plethora of programs—including potentially expensive shallow loss programs—that transfer income to farmers and landowners. It modified conservation and food aid programs, extended heavily subsidized agricultural insurance programs, and modestly changed agricultural research programs. This theme evaluates the economic welfare effects of these new farm bill initiatives.

                              - Barry K. Goodwin and Vincent H. Smith

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Welfare Effects of PLC, ARC, and SCO

Deadweight losses of new U.S. farm programs will be minimal because payments are decoupled from planted acreage. This feature is consistent with Becker’s theory that policy results from competition between rent-seekers. The actual economic damage from the newly designed farm subsidies is the opportunity cost of not funding programs that increase social welfare.

                              - Bruce Babcock

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