Re-coupling

Agricultural reform in the wrong direction:

Rep. Colin Peterson [D-MN], House Agriculture Committee chairman… has suggested increasing most of the price-linked subsidies, and paying for the increase out of the money currently allocated for direct subsidies that farmers receive regardless of production or market prices… While paying farmers “money for nothing” may be fiscally irresponsible, it is less market distorting than the types of subsidies that Chairman Peterson is proposing to increase.

Peterson’s proposal would cause the US to fall behind the EU in decoupling agricultural subsidies and expose the subsidy programs to further litigation at the WTO’s dispute settlement panel.