Effects of Farm Bill Commodity Subsidies on US Corn Production, Farm Income, and Market Price

The International Effects of U.S. Farm Subsidies

Using dynamic programming, this paper examines effects of farm subsidies on U.S. exports of corn, cotton, rice, and wheat. The six policy simulations described here explore alternative proposals in the current round of the General Agreement on Tariffs and Trade. The analysis leads to two conclusions. First, abolishing domestic subsidies lowers world prices of these crops. Second, imposing tight...

Farm-level Production Effects

In theory, lump-sum transfers are a way to redistribute wealth without distorting production decisions. Recent agricultural policy reforms are an unusual large-scale application of this concept. The 1996 Federal Agricultural Improvement and Reform (FAIR) Act removed most price-contingent agricultural subsidies and replaced them with Production Flexibility Contracts—lump-sum payments with few ti...

On-Farm Corn Rootworm Trials

Introduction There are several methods to manage corn rootworms, including crop rotation, rootworm insecticides, and corn rootworm (CRW) transgenic traits. The use of CRW transgenic traits in corn hybrids has allowed farmers to manage CRW without using soil-applied insecticides. However, rootworm populations resistant to the transgenic traits have been confirmed in Iowa, leading some farmers to...

On-farm Corn Rootworm Trials

Methods Eight CRW trials were conducted in Lyon, Sioux, Clay, Monona, Crawford, and Hancock counties in 2013 (Table 1). Some trials compared a CRW-Bt hybrid with and without an insecticide, and others also included a non-Bt hybrid with and without an insecticide (Table 2). In Trials 1, 3, and 7, Pioneer Herculex® hybrids were used. A non-Bt Pioneer hybrid (987HR) was included in Trial 7. In Tri...

PRICE VOLATILITY AND FARM INCOME STABILISATION Modelling Outcomes and Assessing Market and Policy Based Responses