Financial Times published a news story on US administration’s proposed move to provide succor to the soybean farmers from proposed Chinese tariffs by setting up an agency akin to Roosevelt’s Commodity Credit Corp. Cautioning against setting up of such an agency, IFPRI’s Senior Research Fellow Joseph Glauber said that there are several government-backed safeguards that exist and have been retained in the recent farm bill to protect farmers’ incomes. “I just don’t like the idea of government coming up with some balm to spread over wounds that are self-inflicted. It seems to be a huge moral hazard problem,” the article quotes Glauber.
