A revised US Farm Bill looks set to stimulate international trade. The Farm Bill, which must be periodically renewed under US legislation, governs subsidy payments made to US farmers.
Reform provisions in President George W. Bush's draft 2007 reauthorization bill would reduce payments to farmers by $10 billion by 2012 and remove support entirely for farmers earning more than $200,000 per year. The administration proposes to "sweeten the pill" by including $7.8 billion over 10 years in new payments for conservation programs.
The moves could be a boon for re-starting Doha talks on agricultural trade liberalisation.
However, congressional politics are likely to make the reduction or elimination of farm payments difficult, because while heir salience is low among the general public, it is high among farmers and their senators.
