Decoupling Farm Payments: Experience in the U.S., Canada, and Europe

Abstract

Commodity payments in Europe and North America are production based, encouraging greater chemical use and cropping area. Thus, each region undermines the other’s price supports at the expense of the environment. Countries can, however, sever the link between yield levels and payments. Allowing farmers to exit agriculture poses challenges for the US, but perhaps not for Canada and the EU.decoupling, liberalizing trade, environment, flexibility