Since agricultural products are no longer protected under the WTO under special rules as of December 31, knowledgeable observers have been waiting for the other shoe to drop. The first clatter has just occurred. The Wile E Coyote moment has ended and now the developing nations are likely to come at the WTO fast and furious with cases of excessive subsidies and protection.
But all the land that is under the plow in these rich countries today has a market value that is, in part, a reflection of these rich subsidies. With subsidies likely to be eviscerated by the WTO, agricultural states will either have to realign their crops to more profitable, specialty ones that are suited to the climate or they are going to go fallow, not being worth the energy to cultivate.
So what do we do with that land when the price craters?
Posted by TMLutas at April 29, 2004 02:53 PM