ABSTRACT
This chapter examines the Food Security Act of 1985 as a basis for the next major farm bill and looks at pressures that are likely to affect that debate. There are two large components in the cost of farm programs. One is the cost of acquiring and carrying stocks; the other is deficiency payments. The second force shaping the next farm bill will be the international trade negotiations now under way under the auspices of the General Agreement on Tariffs and Trade (GATT). While it is impossible to predict the outcome of those negotiations at this time, it is noteworthy that this is the first GATT Round in which domestic agricultural policies that distort international trade. One factor that will have a significant influence on the next farm bill debate is the fact that net farm income reached record highs in 1987 and 1988 by a substantial margin.
