A new vision for agriculture
momagri, movement for a world agricultural organization, is a think tank chaired by Christian Pèes.
It brings together, managers from the agricultural world and important people from external perspectives,
such as health, development, strategy and defense. Its objective is to promote regulation
of agricultural markets by creating new evaluation tools, such as economic models and indicators,
and by drawing up proposals for an agricultural and international food policy.
A look at the news

The 2012 Farm Bill: towards the removal of decoupled payments and increased insurance?

May 7, 2012


On 26th April, the Agricultural Affairs Office of the Embassy of the United States and Syrpa (national union of technical writers for the agricultural press) organized a meeting in Paris, during which Daryl Brehm, agricultural adviser to the Embassy of the United States, and Jean-Christophe Debar, editor of Agri-US Analyse, evoked the agricultural sector’s strategic dimension for the United States and outlined the ongoing reform of the Farm Bill.

As we have previously stated1, this reform is taking place in a context of budget constraints and high Federal State debt: the agricultural sector will therefore have to participate in the necessary effort to cut costs, with the commitment by several members of Congress to reduce the Farm Bill budget by twenty billion dollars over the next decade.

If no final text has yet been stipulated, some guidelines emerged from the discussions on the reform of the Farm Bill put forward by the US Senate Committee on Agriculture on 26th April:

    - The removal of decoupled subsidies for production (direct payments);

    - Reinforcing counter-cyclical measures through sales revenue insurance (creation of the Agricultural Risk Coverage program to stabilize the average revenue per hectare of crop);

    - Maintaining floor prices, enabling the allocation of marketing loans. So, the next Farm Bill will remove decoupled payments, and will be mainly based on guaranteed, counter-cyclical coupled devices.
While volatility on agricultural prices will continue and even get worse in coming years, effective safety nets to ensure the sustainability of farms are even more necessary than ever. But in Europe, the proposals for CAP reform currently put forward by the Commission will not improve the effectiveness of existing measures for regulating and stabilizing the income of European farmers. This is mainly because 3 quarters of the CAP budget consists of decoupled payments, the Single Farm Payments, unrelated to production.

Given the highly strategic dimension of the agricultural sector for the European Union, the idea of improving the protection of farmers that leads reform proposals in U.S. farm policy, can and should be applied in Europe.

Another CAP is possible: it is in this direction that momagri are finalizing the development of an alternative reform proposal, to achieve lasting stability for farmers’ incomes at remunerative levels, while meeting the budgetary requirements of the European Union.

1 Please see momagri’s article “"Doing more with less": the challenge of the future Farm Bill”, http://www.momagri.org/UK/a-look-at-the-news/-Doing-more-with-less-the-challenge-of-the-future-Farm-Bill_1007.html
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Paris, 26 April 2019