By 1998, Mexico had eliminated all import tariffs on our cotton. Mexico now, by far, the largest export market for US cotton. Doubles the 1999 AMTA payment to Arizona Farmers. Funds Step 2 WTO and competitor-country view of Step 2 payments unclear. Tronstad and Ker show that since 1985 crop insurance provided good returns to Arizona cotton farms.
New legislation makes crop insurance even more attractive.
Farm Legislation in 2002 1. Marketing loan program. Traditional non-recourse loan program. Farm savings accounts. Counter-cyclical income payments.