Political Economic Analysis Of Dairy Policies In The United States

The U.S. Congress, in the Farm Security and Rural Investment Act of 2002 (the 2002 Act), directed the Secretary of Agriculture to conduct a “compre­hensive economic evaluation of the … effects of the various elements of the national dairy policy.” The Act further directed the Secretary to study the effects of (a) terminating Federal milk price support and supply manage­ment programs, and (b) allowing State cooperation to manage milk prices and supply. Both studies deal with similar questions that relate to the effects of government policies on economic outcomes. For this reason, the two studies are combined into this single report. This report examines the effects of national dairy policy and its component programs as defined in the 2002 Act on milk and dairy product markets, farm households, nutrition programs, and the rural economy. These programs include: Federal milk marketing orders, the Federal milk price support program, State pricing programs and State-mandated over-order premiums, interstate dairy compacts, direct payments to milk producers, and the dairy export incentive program (DEIP). The report focuses on the following questions: what have been the measur­able effects of dairy programs on economic variables—price level and volatility, milk production, and producer revenues? How have these market impacts in turn affected farms, rural economies, and nutrition programs? How might States cooperate to support prices in the absence of a Federal price support program? The standard tools of economic analysis are used to address these questions, but there are also other forces at work that have influenced the dairy sector. Changes in the dairy sector should be consid­ered in a larger context with a longer-run perspective. Thus, the first part of this report answers another, related question: what factors can we identify that have been responsible for changes in the dairy sector?

Evolution of agricultural policies in the United States and France, 1930-80; The U.S. Dairy production stabilization act of 1983; Confrontation between the United States and the European Community on International Trade of Agricultural products.

Agricultural trade, always a source of international friction, will remain a contentious issue in the years to come. The GATT agreement achieved only partial trade liberalization; recognizing this, the agreement calls for a continuation of the negotiation process to achieve the long-run goal of a “substantial reduction in agricultural support and protection.†In any case, it is clear that U.S.-European Union (EU) agricultural trade relations will remain central to any future negotiation. In this volume, leading experts present a comprehensive set of analyses of the U.S.-EU agricultural trade conflict. The discussions provide a unique perspective on the U.S.-EU agricultural trade confrontation in recent years and offer insights into both the final GATT agreement and forthcoming agricultural issues. Presenting a broad historical context, the book focuses on changes in U.S. and European trade and agricultural policies, looking at the implications of these changes for bilateral relations and global agricultural markets. Providing U.S., EU, and third-party perspectives, the contributors analyze the negotiation process in the Uruguay Round of the GATT. Finally, the book explores several additional dimensions of the U.S.-EU agricultural trade conflict, including the consequences of the EU integration and enlargement processes, the environmental impact of the Union’s agricultural policies, and the mechanisms and forces that determine agricultural policy formation in both the United States and in Europe.

This book presents a descriptive analysis of the political economy of the European Community, the U.S. and Canada. It describes the structural changes and the crises in agriculture and focuses on impact of GATT on agricultural policy and trade in the post-Second World War era.