# Analysis: Skyrocketing US subsidies will far exceed WTO limits | 2020-08-11  | Agri-Pulse Communications, Inc.

> An analysis by Joe Glauber estimates US trade-distorting farm subsidies will reach about $32.7 billion for 2019, above the $19.1 billion WTO limit. He projects the total could exceed $40 billion in 2020 depending on additional coronavirus aid.

- Date: 2020-08-12 · published 2020-08-12T12:00:00.000Z
- Category: policy · region US · magnitude low
- Page: https://feedsoft.ai/events/51603-analysis-skyrocketing-us-subsidies-will-far-exceed-wto-limits-2020-08-11-agri
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md), [Soybeans](https://feedsoft.ai/c/SOY.md), [Wheat (SRW)](https://feedsoft.ai/c/WHEAT.md)

## Why it matters

Subsidy levels above WTO limits could invite legal challenges from trading partners and raise trade-policy risk for US farm exports. Continued heavy support also supports US production, which is mildly bearish for grain and oilseed prices.

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| CORN | 2019-01-28 | [Farm subsidies to leap on $9.8 billion in trade aid \| 2019-01-28 \| Agri-Pulse \| Agri-Pulse Communications, Inc.](https://feedsoft.ai/events/61080-farm-subsidies-to-leap-on-9-8-billion-in-trade-aid-2019-01-28-agri-pulse-agri.md) | +0.7% | +0.8% |
| CORN | 2023-06-16 | [Payment limits to be reconsidered in Farm Bill \| Agri-Pulse Communications, Inc.](https://feedsoft.ai/events/35467-payment-limits-to-be-reconsidered-in-farm-bill-agri-pulse-communications-inc.md) | +2.2% | -5.1% |
| CORN | 2016-11-30 | [Farm bill wheels starting to turn \| Agri-Pulse Communications, Inc.](https://feedsoft.ai/events/73846-farm-bill-wheels-starting-to-turn-agri-pulse-communications-inc.md) | +4.0% | +2.6% |
| CORN | 2020-11-02 | [China fills grain quotas as the US weighs WTO compliance \| 2020-11-02  \| Agri-Pulse Communications, Inc.](https://feedsoft.ai/events/50018-china-fills-grain-quotas-as-the-us-weighs-wto-compliance-2020-11-02-agri-pulse.md) | +0.5% | +8.6% |
| CORN | 2018-10-03 | [Farm bill expiration impact varies \| 2018-10-02 \| Agri-Pulse \| Agri-Pulse Communications, Inc.](https://feedsoft.ai/events/62518-farm-bill-expiration-impact-varies-2018-10-02-agri-pulse-agri-pulse.md) | -1.7% | -1.3% |
| SOY | 2019-01-28 | [Farm subsidies to leap on $9.8 billion in trade aid \| 2019-01-28 \| Agri-Pulse \| Agri-Pulse Communications, Inc.](https://feedsoft.ai/events/61080-farm-subsidies-to-leap-on-9-8-billion-in-trade-aid-2019-01-28-agri-pulse-agri.md) | -0.8% | -1.5% |
| SOY | 2023-06-16 | [Payment limits to be reconsidered in Farm Bill \| Agri-Pulse Communications, Inc.](https://feedsoft.ai/events/35467-payment-limits-to-be-reconsidered-in-farm-bill-agri-pulse-communications-inc.md) | +4.6% | +3.9% |
| SOY | 2016-11-30 | [Farm bill wheels starting to turn \| Agri-Pulse Communications, Inc.](https://feedsoft.ai/events/73846-farm-bill-wheels-starting-to-turn-agri-pulse-communications-inc.md) | +0.5% | -3.4% |

## Sources

- agri-pulse.com: https://www.agri-pulse.com/articles/14243-analysis-skyrocketing-us-subsidies-will-far-exceed-wto-limits

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.