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Farm Progress reports that U.S. farm payments have risen sharply over the past two years and may exceed $40 billion in 2020, well above the $19.1 billion Amber Box limit. Other WTO members are challenging these subsidies.
The rise is attributed to the 2019 trade war and the COVID-19 pandemic.
A WTO challenge could force the U.S. to cut trade-distorting support later, which would affect future farm payment levels and long-run production incentives.
farmprogress.comGinger RowseyNov 25, 2020After 1,623 past policy events, Corn moved a median +0.1% over 5 sessions (51% higher; middle half -1.4% to +1.5%), and +0.4% over 20.
After 1,905 past policy events, Soybeans moved a median +0.1% over 5 sessions (52% higher; middle half -1.4% to +1.8%), and +0.2% over 20.
After 1,019 past policy events, Wheat (SRW) moved a median -0.1% over 5 sessions (49% higher; middle half -1.7% to +1.5%), and +0.2% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
