Decoupling transfers price risk from the government to the farmer. Because of this, producers must be better managers of risk in the new environment. It is a myth that farm programs will end in 2002. Debate will center around how this money should be used. There are at least seven main options for the next farm bill debate.
Flexibility is popular and there has been a tremendous change in the crop mix.
The fixed payment schedule and flexibility of Freedom to Farm worked very well for farmers during the high income years of 1996 - 97. It remains to be seen if freedom to farm can survive falling prices and low exports. It will depend on what commodity prices and farm income levels are during the debate. This option involves reinstituting target price, base acres, deficiency payments, and the nonrecourse loan. Under this option, Congress loses control of expenditures since producers would be entitled to a payment tied to price.