Agricultural Subsidies Under Decoupling

Andrew Schmitz, Frederick Rossi, Troy G. Schmitz

Research output: Contribution to journalArticlepeer-review

3 Scopus citations


Following the World Trade Organization (WTO) ruling favoring Brazil over U.S. cotton growers, the debate continues over the impact of U.S. farm policy. For U.S. cotton policy, the price impact depends on several factors, including the extent to which it is decoupled from production. The impact on world cotton prices under decoupling (the loan rate is used in supply response analysis) is much less than under coupling (the target price is used in producer production decisions). Also, the welfare impacts are very different. Using cotton as an example, the welfare cost of U.S. cotton policy is much less under a decoupled program.

Original languageEnglish (US)
Pages (from-to)131-148
Number of pages18
JournalResearch in Law and Economics
StatePublished - 2007

ASJC Scopus subject areas

  • Law
  • Economics, Econometrics and Finance (miscellaneous)
  • Economics and Econometrics


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