The central thesis developed in this paper is that snapshot views of the global measures of agricultural support mask what is really happening in U.S. and E.U. agricultural policies. We demonstrate that American and European farmers are effectively protected from market risk by these policies....

The federal government currently subsidizes ethanol with a fixed payment of $.51/gallon of ethanol blended with gasoline. Ethanol profitability is closely linked to the prices of corn and ethanol. The purpose of this paper was to develop a variable subsidy based on corn and ethanol prices and...