US and EU Agricultural Policies: Impacts on Global Markets
New Political Objectives of the CAP, According to Agenda 2003
- Improves competitiveness, which translates into lower prices and maintenance and consolidation of exports.
- Food safety and quality.
- Protection of animal welfare.
- Quality policy, designation of origin, and particular production methods.
Purpose of the New European Model of Agriculture
- Social legitimation of CAP support.
- Preparation of the strategy for the new round of negotiations on the CAP.
- Maintain or lose EU share in international commodity markets.
Multifunctionality as a European Model of Agriculture
It consists of the various functions undertaken by the European Council of Agriculture to modulate and redistribute aid and its contribution (of production) to preserving sustainable agriculture and contributing to economic and social cohesion.
Most Important Elements of the CAP Reform in 2003
The new CAP is geared towards consumers and taxpayers while giving EU farmers the freedom to produce what the market wants.
Why the US Study Cannot Understand Global Agricultural Patterns
Why is it said that the US study cannot understand the patterns and problems of production, consumption, and marketing of agricultural products by the early twentieth century in the world?
Well, it is based largely on soybean production. There was imposing a certain model of production, consumption, and exchange model of Europe.
Steps in Agricultural Growth in the US in the Long Run
It can be distinguished:
- Growth
- Stagnation
Difference in the Phases of Agricultural Growth in the US
What difference can be established in the nature of the first phase of agricultural growth in the US with respect to the second phase of long-term growth?
The first phase was characterized by increased production, primarily in terms of cultivated area, also became a model extended to an intensive one. However, the second phase was characterized by a breakdown of the balance struck in the first phase due to the crisis of the 1930s, bringing poor production due to state intervention.
Main Factors in the Global Market for Production
We have:
- The consumer
- The participation of the producer.
Soybean Prices in the World Market and Countries Involved
How is the price of soybeans in the world market, and what are the countries involved?
The price of corn in the US taken each year is a fixed-rate loan, which is the minimum price. In Brazil, it is similar to previous sets of prices based on the US and international market fluctuations. Speaking countries like the USA, Brazil, Argentina, and importing countries.
Agricultural Adjustment Act in the US
What constitutes the Agriculture Adjustment Act that the US president suggested, and in what period?
It is protection for agriculture in the state, guaranteeing prices, import control, and export support, which will allow for expansion and increased production. The US president, Roosevelt, promulgated it in 1935.
Policy of Guaranteed Prices
The state guarantees farmers a minimum price. If, for some reason, the international market price is lower, the farmer could integrate their output to the CCC and so get rid of your loan, and if the price is higher on the international market, they could sell at market price. The farmer is assured.
Direct Payment Programs for US Agriculture
It is a program where farmers receive direct government subsidies.
Control Policy of Production
It consists of a series of grants from the state to the American farmer not to work the land. It has strategic purposes.
Anti-Cyclical Payment Programs of Current US Policy
This program was designed to offer beef producers better insurance on income. Cast consists of payments whenever the effective price of the products is lower than the preset target price by the government.
Loans and Marketing Assistance Loan Payments Replaced
Consists of the granting of a number of loans extended to farmers that must be repaid in 9 months. It aims to minimize the potential for bad debtors and prevent the government from having to build inventories of commodities.
Support Programs for Productive Sectors
It consists of subsidizing or supporting sectors to ensure, through loans, marketing assistance payments.
Service Programs
It consists of special incentives and credit facilities to prospective buyers, and those abroad, for US agricultural products.
Support Programs for Exports
Support programs consisted of the US to their own exports by providing export operations in that country abroad through special incentives and credit facilities to prospective buyers abroad and infrastructure for the storage of US agricultural products.
Main Impacts of the 2002 US Farm Bill on Latin America
The US Farm Bill increases the number of protection mechanisms and support to this sector of the United States and increases the amounts that had been established in 1996. The application of subsidies from US production causes depreciation of international market prices and leads to dumping of products. And as you know, dumping is selling a product below its fair market price, this being an unfair trade practice because it allows US companies, whether efficient or inefficient, to bankrupt competitors and cause damage to the economy of Latin America. In general, it leads to the unjustified removal of efficient firms that are targets for employment and development. These companies cannot compete with US firms because the latter are heavily subsidized, displacing Latino businesses and destroying their productive apparatus.
Configuration Process of the Peruvian Agro-exporting Economy
When and where is the configuration process of the Peruvian agro-exporting economy?
It is given from the twentieth century, which clearly begins to develop capitalism in agriculture. This is a process marked by foreign capital, decoupling of an internal process of industrial development.
Axis of Capital Accumulation in Peru Since the Late 19th Century
Export agriculture and mining constitute the axis of capital accumulation.