Beauty Amidst the Bytes_ Unearthing Unexpected Advantages of the Digital Wast...
24 brad lubben
1. Changing Farm Policies for
Changing Times
Bradley D. Lubben, Ph.D.
Extension Assistant Professor and
Policy Specialist
Department of Agricultural Economics
University of Nebraska-Lincoln
UNL Farm Bill information – farmbill.unl.edu
USDA Farm Bill information – www.usda.gov/farmbill
2. Farm Bill Goals
■ A continued evolution toward risk
management
■ 1930s – 1996
• Supply control and price support
■ 1970s – present
• Income support
■ 1980s – present
• Risk management
3. Farm Bill Goals
■ Supply control and price support
(1930s – 1996)
■ Marketing allotments
■ Production quotas
■ Non-recourse commodity loans (-1985)
■ Acreage reduction (-1996)
■ Government stocks/farmer-owned reserve (-1996)
4. Farm Bill Goals
■ Income support
(1970s – Present)
■ Target prices/deficiency payments (1973-1996)
• Counter-cyclical payments (2002-present)
■ Non-recourse marketing loans (1985-present)
■ Direct payments (1996-present)
5. A Short Review of Direct
Payments
Decoupled, fixed, transition(?) payments
■ Popular in 1996 ■ Popular target in
because of 2011 because of
■ Flexibility ■ Paid regardless of
■ WTO friendly price and income
■ Secured a ■ Accrue to large
disappearing farms
baseline ■ $5 billion/year
6. Farm Bill Goals
■ Risk Management
(1980s – Present)
■ Modern crop insurance legislation of 1980, 1994,
and 2000
■ Ad hoc disaster assistance
• SURE (2008-2011)
■ ACRE – (2008-present)
11. Managing Risk with the Farm
Income Safety Net
“A Multiplicity of Confused Concepts”
Scope of Risk
Farm Level Area Level National Level
Protection
Hedging
Price
ML/LDP CCP
RP/HPE AGR GRIP ACRE
Revenue DP SURE
RP
Production
CAT YP GRP PRF