Return to TFB Main Page
Return to Current Edition
Texas Agriculture Archive

May 17, 2002

FAPRI releases analysis

In response to congressional requests, the Food and Agricultural Policy Research Institute (FAPRI) has released a preliminary analysis of the impacts of the 2002 farm bill. The analysis focuses on effects of the commodity and conservation titles of the bill and is based on a set of baseline projections prepared in early 2001.

Key findings of the analysis include:

• Relative to the baseline, net outlays on commodity programs increased by $49.7 billion over the next 10 years and the conservation title increases net outlays $13.2 billion over the next 10 years.

• Commodity program provisions increase net farm income by an average of $3.8 billion per year and conservation programs contribute an additional $700 million per year.

• Total area planted to major crops increases slightly due to higher support levels and grain and cotton prices fall slightly due to increased production. However, oilseed prices increase marginally.

• The new dairy program results in a small increase in milk production and lower milk prices.

The analysis shows that Iowa will continue to receive the greatest amount of farm program benefits under the new farm bill, followed by Illinois, Minnesota, Texas and Nebraska.

"This analysis verifies that this new farm bill will benefit farmers across the country by providing increased income assistance and a reliable farm safety net," said Sen. Tom Harkin (D-Iowa), chairman of the Senate Agriculture Committee.