Farm Program Spending: What's Permitted Under the Uruguay Round Agreements

Summary

This report discusses farm income and commodity price support proposals that

might succeed the programs due to expire in 2002. A key question being asked of

virtually every new proposal is how it will affect U.S. commitments under the 1994

Uruguay Round Agreement on Agriculture (URAA), which commitsthe United States

to spend no more than $19.1 billion annually on domestic farm supports most likely to

distort trade. The URAA spells out the rules for countries to determine whether their

policies are potentially trade distorting, and to calculate the costs.