Framework for Analyzing Specific Agricultural Policy Reform, A

Richard E. Just, Gordon C. Rausser, David Zilberman
June 1992  [90-GATT 18]

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Just, R., G. Rausser, and D. Zilberman. 1992. "Framework for Analyzing Specific Agricultural Policy Reform, A." CARD paper 90-GATT 18. Center for Agricultural and Rural Development, Iowa State University.


The agricultural sectors of the United States and other developed countries have been subjected to a myriad of policies and regulations that have contributed to unsatisfactory production patterns and resource allocations both within and between countries. Furthermore, such policies have imposed heavy financial burdens on governments that have transferred substantial resources to support the farm sector. The General Agreement on Tariffs and Trade (GATT) strives to improve the efficiency of agricultural trade and production patterns globally. It is proposed that GATT will reduce the set of permissible agricultural policy instruments, thereby eliminating some policy options that have contributed to several of the undesired consequences of the past. Used correctly, the feasible set of policies is believed to allow for a gradual down scaling of agriculture's excess supply and to make the sector more flexible and progressive. Ultimately, once the restricted set of policies is introduced, it is expected that a sustainable growth path will be achieved.