Phil Kaus joined CARD in July 1998 after completing a master’s degree in statistics and economics at the University of Nebraska. He is the U.S. and Iowa crops and livestock analyst for the Food and Agricultural Policy Research Institute (FAPRI), part of CARD’s Trade and Agricultural Policy Division. Phil also does analysis of international sugar, and quantity and value of U.S. exports

The combines are starting to roll in the cornbelt. The October 1,Crop Report showed that 18 percent of Iowa’s corn crop and 32 percent of the soybean crop were in the bin. Current estimates for the U.S. corn crop are between 9.1 and 9.4 billion bushels and between 2.7 to 2.8 billion bushels for the soybean crop. These rather large crops will add to an already ample carryover supply.

Many congressional leaders want to begin hearings this winter that could lead to a new farm bill. Nearly all interest groups want to see an increase in federal involvement in agriculture. But before Iowa’s farm groups push for a change in policy, they should understand that, for Iowa, some forms of government help are preferred to others, and some forms of government assistance can actually be harmful.

The European Union’s (EU) Common Agricultural Policy (CAP) is set to undergo comprehensive reforms, known as Agenda 2000, next year. The twofold objective of these reforms is to ensure the sustainability of European agriculture and to protect the livelihood of European farmers. In May 1999, the European Council officially adopted new financial and political guidelines—dubbed the Berlin Accord— that will increase government support to farmers through direct payments while reducing support prices for cereals, beef, and dairy products.