ABSTRACT
Agricultural programs in the United States and the European Community (E.C.) share many common goals. These include supporting farm incomes, ensuring adequate supplies of food, and protecting the rural environment. Surplus production, especially of arable crops, has become a critical problem for the E.C. In response to mounting surpluses, the E.C. instituted a reform of its Common Agricultural Policy that includes a set-aside program. US policies for program commodities are characterized by two essential features: participation in the programs is voluntary, and program benefits are linked to program obligations. Acreage reduction programs are the most common type of annual acreage control programs for US field crops. Limits in the effectiveness of acreage reduction programs in reducing supply have been encapsulated in the term “slippage.” The most significant source of acreage slippage under the E.C. program will result from the provision allowing small farmers to receive program benefits without having to meet any set-aside obligation.
