When the new Republican House majority takes up the 2012 farm bill, Purdue agricultural economist Roman Keeney says farmers should expect lawmakers to reduce spending by focusing on three major areas: Brazil, budget and baseline.
In 2009 the World Trade Organization allowed Brazil to impose sanctions against the United States after ruling that U.S. cotton subsidies were illegal under the WTO framework. In April, the U.S struck a last minute deal to send $147.3 million dollars of annual support to Brazilian cotton production.
“That deal is a temporary resolution to the WTO case that Brazil won against U.S. cotton subsidy programs several years ago,” Keeney said. “The major issue in resolving the WTO case is for the U.S. to bring their policy into compliance in the 2012 farm bill.”
Sending $147.3 million dollars to Brazil is not a huge economic stress to the U.S., Keeney said, but it brings attention to agricultural spending at a time when the budget deficit is a major public concern.… Continue readingRead More »