US agricultural policies

Background to US agricultural policy

The roots of the U.S. farm policy may lie in the commodity price support programs established in the time of the Great Depression in the 1930s. Policies were set up to support farm income while at the same time ensuring availability of food at affordable prices for workers in the non-farm economy. Over the course of the last decade the focus of U.S. farm policy has shifted in favour of “decoupled” support programmes and trade liberalisation. U.S. crop exports have generally declined, but government payments to farmers have increased considerably.

Current position on agricultural subsidies

In February 2006, the US Congress approved the scrapping of major subsidies to the cotton industry, responding to pressure, largely from Brazil, who complained that said government help for American cotton farmers was distorting the global market. In 2000, the United States launched the African Growth and Opportunity Act (AGOA), which promises quota and duty free access to US markets for some horticultural products from Africa, provided strict food and plant safety regulations can be met.