See Bridges Weekly (ICTSD) for (HOORAY!) 'Obama Proposes Billions in Subsidy Cuts as Farm Bills Kicks Off'.
US agricultural subsidies have been distorting the global agricultural market for decades. By supporting the domestic agricultural market (keeping US farmers afloat and US produce costs [artifically] low for the consumer) with subsidies in core crops that the US no longer maintains a competitive edge, global competitors in less developed countries are forced to sell their agricultural products at the same artifically low price in the global marketplace.
At some point, the consumers in the US will feel this; prices on produce will adjust to what US consumers SHOULD have been paying for decades - but due to domestic subsidies and market distortion, they haven’t. I’m very pleased Obama is taking this initiative - as US agricultural subsidies ALONE have been a major reason for the lack of progress on Doha (see previous post) - to rectify the increasing gap between US consumers’ overconsumption and widespread hunger in less developed nations that rely on agricultural exports.