Farmers Market Promotion Program

Farmers Market Promotion Program

Farmers Market Promotion Program

Introduction

The US Farm Bill of 2002 was signed by the then US President George Bush, which entitled the Farm Security and Rural Investment Act of 2002. This bill was conceived by a large number of countries to be a serious threat to the trade interests of countries. Many critics of the bill believed that it did not comply with the international trade agreements signed by the United States like the Doha Development Agenda as well as the commitments made under the WTO negotiations. Many countries which included Australia, Canada and European Union showed their discontent against the new bill by asserting that they would go the extent of challenging the bill under the procedure provided by WTO for dispute settlement. It was the same bill that formed the Farmer Market Promotion Program. This paper briefly discusses the historical developments that led to the creation of the Farm Bill and consequentially the FMPP. The Farmers' Market Promotion Program FMPP intends to augment and support the producer to consumer marketing channels. The purpose is that the direct way of reaching out to the consumers is realized. By employing a competitive process for granting applications, thus program finances marketing plans for community advocated agriculture program, farmers' markets, roadside setups, and other direct promotion approaches (Daseking, 2005). The paper looks at the two programs that affect the initiative taken through this program in both a positive and negative way.

Key Highlights of the US Farm Bill of 2002

The US Farm Bill of 2002 comprised of ten titles namely Commodity programs, trade, credit, rural development, nutrition programs, conservation, forestry, energy, research and miscellaneous. Through these programs the government of the United States extended its support for the various segments of its national agriculture sector by providing support of approximately $180 billion. This support was to be distributed under various programs over a course of ten years. This support was a massive 70% increase over the grant that was previously provided by the US government. The government aimed to distribute the benefits of the bill in a harmonious manner by ensuring that all of its agricultural products benefit from it. Some of the key commodities targeted for support included wheat, peanuts, corn, sugar, and dairy. The Farm Bill of 2002 served as a major strand towards achieving market liberalization, which was one of the key elements for the Farm Bill of 1996. The US government introduced the concept of paying the farmers based on the support that was granted to them in the past according to the Farm Bill of 1996. This was a major shift from the old method where farmers were paid based on the production needs of the country and the prices that were prevalent in the market. With the Farm Bill of 1996, the government had hoped that it would be able to distinct itself from providing direct support to farmers and make its decisions based on their history to decrease the distortion in ...