A combination of domestic and international factors may combine to create pressure for
change in U.S. agricultural policies. In recent years, the United States has moved from a position
of relative fiscal balance to one of substantial deficit. In the early 1990s, similar budgetary
problems led to modifications in agricultural programs aimed at reducing government
expenditures. Currently, negotiations are underway through the World Trade Organization
(WTO) on liberalizing agricultural trade. A final agreement will likely require a reduction in
import protection and will impose greater discipline on government support expenditures.
Changes in current agricultural policies in response to these domestic and international factors
would intensify adjustment pressures in the U.S. agricultural sector. It may be necessary to take
action to aid the adjustment process in order to facilitate policy reform.