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Agricultural Policy and Subsidies

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Conservation Programs

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Incentives for farmers to implement practices that conserve soil, water, and other natural resources. These can improve environmental quality and sustainability of agriculture.

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Export Subsidies

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Financial support to domestic producers for exporting their goods to help them compete in global markets. Can distort international trade and affect local markets abroad.

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Input Subsidies

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Financial support for inputs such as fertilizers, seeds, and machinery. Lowers production costs for farmers, possibly leading to increased agricultural output.

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Blue Box Subsidies

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These are direct payment subsidies under a production-limiting program which are exempt from reduction under WTO rules. Aim to reduce overproduction while supporting farmers.

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Farm Bill

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Comprehensive legislation in the United States that covers a wide range of agricultural and food programs. It is updated usually every five years and includes subsidies and conservation programs.

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Food Security Act

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A law that focuses on the availability of safe and nutritious food. It can involve both direct food aid and support for agricultural production which indirectly contributes to food security.

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Supply Management

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A policy that controls production levels and stabilizes prices through quotas and market boards. It can limit oversupply and ensure stable incomes for producers.

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Amber Box Subsidies

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Subsidies that are subject to reduction commitments under WTO because they are considered to distort trade, such as price support. They are tied to production quantities.

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Conservation Reserve Program (CRP)

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A U.S. land conservation program that compensates farmers for removing environmentally sensitive land from agricultural production and implementing conservation practices.

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Market Access Program (MAP)

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A U.S. program that assists exporters with activities that promote U.S. agricultural products overseas. Aims at developing new markets and enhancing competitiveness.

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Price Loss Coverage (PLC)

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A program that provides payments to farmers when market prices fall below a reference price. It helps protect against the risk of falling prices.

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Price Support Programs

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Policies that guarantee a minimum price for farmers' products, often by government purchasing surplus or offering loans. Helps to prevent market crashes and protect farmer income.

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Crop Insurance

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A risk management tool that provides farmers financial protection against crop loss or damage caused by natural disasters. Encourages riskier but potentially more profitable farming practices.

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Agricultural Adjustment Act

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1930s legislation in the United States aimed at boosting agricultural prices by reducing surpluses. It was done through acreage reduction and paying farmers subsidies.

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Direct Payments

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A form of agricultural subsidy where payments are given to farmers independent of their production levels. This stabilizes farmer income and encourages conservation.

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Foreign Agricultural Service (FAS)

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A U.S. agency that represents the agricultural interests abroad, implementing agricultural trade policy, and providing information and analysis. It works to improve global food security and support U.S. farmers.

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Agricultural Risk Coverage (ARC)

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A subsidy program that provides income support payments to farmers when crop revenues decline. It helps mitigate revenue fluctuations.

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Marketing Assistance Loans

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Loans provided to farmers using their harvested crops as collateral. Enables farmers to wait for higher market prices before selling their produce.

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Rural Development Programs

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Initiatives aimed at improving economic conditions in rural areas, including infrastructure, access to services and economic diversification. Benefits farmers by enhancing the local rural economy and infrastructure.

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Green Box Subsidies

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Subsidies that are considered minimally trade-distorting under WTO rules, such as environmental protection and research. Meant to improve sustainability without affecting trade significantly.

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