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1 1 (December 7, 2021)

handle is hein.amenin/aeiaefb0001 and id is 1 raw text is: Key Points * Ad hoc paymoents ornpensating armrs or' the costs of COV-i 19 shutdowns and a recent trad e war mav have esabLished a new norrn in the minds of farm interest gro ps that the federal governrent owe0 agricultr al )roducers cornpensation for any govern- ment action teat may reduce revenues. * Combat ng gr enhau s gas (GHG) -mis sons cou ld well become the new rationale for a perranent i3c e in lar- revenu'e and Te share of revenue provided by o'governrnent payments nrough largely ineffecive programs. Hvyowvr. brad .-bsEd HG reduction subsidies with payrnents based on actual emis- sions reductionS (nOt pro duOn prac[ices or other rahora;es) could have the virtue of not being as bad as m anmy her poIc ideas cmurrentiy being considered, but we she uld be wary of adding this prograr on top o exising subsides instead or replacing thorn. Govcrnmnt 1ye1 n'C).ts to farmis are popular among those who receive the paynents and the (few) legislators who count on the support of farmers and their families and friends. Because farm sucbsidi es, tuough totaling tens of billions of dollars, are now a tiny share goeern can out- lays, laws authorizing farm payments can pass muster when buried in larger packages. Eaples include the periodic farm bills, in which most o the ioney is for transfers to the urban poor through nutrition programs such as the Supple - ieital Nutrition Assistance Program, and Ih e proposed Build Back Better Act, of which about o40 billion, out of trillions, is targeted for agri- cultural subsidies. Tying farm subsidies to popular programs that are perceiv Ct proiide .road public benefits limits the impacts of critiques of farm programs. For many years, claims about food security, unacceptably low farms prcr5 or revenues, and other peculiar features of farm comm odity mar- kets provided publ i rationales f-r payments., Government-cre.ted export declines in 2017-19 and market disruptions during the COVID-ig pandemic in /2O2r-2 cnergi7ed demands for temporary ad hoc irnreases in agricultural subsi- dies that caused new highs in tmi revenue? The notion that the federal government owed tarmsers compensation for disrupting muarkets was

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