Fixing the 2012 farm bill: Where do we go from here?
The fiscal costs of Price Loss Coverage in the 2012 farm bill

Video

 

 

 

In an engaging presentation at the Longworth House of Representatives Office Building on Wednesday, leading agricultural economists examined the budget implications of two programs contained in the House Agricultural Committee’s proposed 2012 farm bill, reflecting a recently released AEI American Boondoggle working paper. Barry Goodwin of North Carolina State University began by explaining how farm households have benefitted from high crop prices and government assistance, now earning more than the median U.S. household and carrying very low debt-to-asset ratios relative to other business sectors.

Vince Smith of Montana State University and AEI then alleged that the Congressional Budget Office's scoring of the Price Loss Coverage and Supplementary Coverage Option provisions fails to examine scenarios under which crop prices fall to recent historical average levels. In this scenario, he cautioned, the costs of these programs would balloon to $20 billion annually, drastically exceeding those of the direct payments program they would replace.
--Brad Wassink

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About the Author

 

Vincent H.
Smith
  • Vincent H. Smith is Professor of Economics in the Department of Agricultural Economics and Economics at Montana State University and co-director of MSU’s Agricultural Marketing Policy Center. He received his Ph.D. from North Carolina State University in 1987 and his bachelor’s and master’s degrees from the University of Manchester in 1970 and 1971. Dr. Smith’s current research program examines agricultural trade and domestic policy issues, with a particular focus on agricultural insurance, agricultural science policy, domestic and world commodity markets, risk management, and agricultural trade policy. He has authored nine books and monographs and published over 100 articles on agricultural and other policy and economic issues. His work has been recognized nationally through multiple national awards for outstanding research programs. In 2008, he became a Distinguished Scholar of the Western Agricultural Economics Association. Currently he is a Visiting AEI Scholar and co-director of AEI’s agricultural policy initiative. Dr. Smith is married and he and his wife, Laura, have two children, Karen and Meredith.
  • Email: uaevs@montana.edu
  • Assistant Info

    Name: Neil McCray
    Phone: 2028625826
    Email: neil.mccray@aei.org

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Wednesday, April 23, 2014 | 12:00 p.m. – 1:30 p.m.
Graduation day: How dads’ involvement impacts higher education success

Join a diverse group of panelists — including sociologists, education experts, and students — for a discussion of how public policy and culture can help families lay a firmer foundation for their children’s educational success, and of how the effects of paternal involvement vary by socioeconomic background.

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Thursday, April 24, 2014 | 12:00 p.m. – 1:30 p.m.
Getting it right: A better strategy to defeat al Qaeda

This event will coincide with the release of a new report by AEI’s Mary Habeck, which analyzes why current national security policy is failing to stop the advancement of al Qaeda and its affiliates and what the US can do to develop a successful strategy to defeat this enemy.

Friday, April 25, 2014 | 9:15 a.m. – 1:15 p.m.
Obamacare’s rocky start and uncertain future

During this event, experts with many different views on the ACA will offer their predictions for the future.   

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