Paper presented at the IAMO Forum 2004 “The role of agriculture in Central and Eastern European rural development: Engine of change or social buffer?” 4 – 6 November 2004, Halle (Saale), Germany

Facing the general trend towards larger but fewer farms since 1935, the US government implemented a protective safety net for small farmers during 1933-96 which did not halt it but incurred market distortions and other drawbacks. It then switched to market oriented measures in 1996 which have...