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Agricultural Policy and Subsidies
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Marketing Assistance Loans
Loans provided to farmers using their harvested crops as collateral. Enables farmers to wait for higher market prices before selling their produce.
Rural Development Programs
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.
Food Security Act
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.
Supply Management
A policy that controls production levels and stabilizes prices through quotas and market boards. It can limit oversupply and ensure stable incomes for producers.
Agricultural Risk Coverage (ARC)
A subsidy program that provides income support payments to farmers when crop revenues decline. It helps mitigate revenue fluctuations.
Direct Payments
A form of agricultural subsidy where payments are given to farmers independent of their production levels. This stabilizes farmer income and encourages conservation.
Input Subsidies
Financial support for inputs such as fertilizers, seeds, and machinery. Lowers production costs for farmers, possibly leading to increased agricultural output.
Conservation Reserve Program (CRP)
A U.S. land conservation program that compensates farmers for removing environmentally sensitive land from agricultural production and implementing conservation practices.
Crop Insurance
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.
Foreign Agricultural Service (FAS)
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.
Conservation Programs
Incentives for farmers to implement practices that conserve soil, water, and other natural resources. These can improve environmental quality and sustainability of agriculture.
Green Box Subsidies
Subsidies that are considered minimally trade-distorting under WTO rules, such as environmental protection and research. Meant to improve sustainability without affecting trade significantly.
Amber Box Subsidies
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.
Blue Box Subsidies
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.
Export Subsidies
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.
Agricultural Adjustment Act
1930s legislation in the United States aimed at boosting agricultural prices by reducing surpluses. It was done through acreage reduction and paying farmers subsidies.
Price Loss Coverage (PLC)
A program that provides payments to farmers when market prices fall below a reference price. It helps protect against the risk of falling prices.
Farm Bill
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.
Price Support Programs
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.
Market Access Program (MAP)
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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