The document discusses the transition of agricultural policies in both the European Union and United States. In the EU, the Common Agricultural Policy faces pressures from budget concerns, trading partners, and new societal concerns around the environment, food safety, and rural development. Reform is likely to focus the CAP around its core function of food production while addressing these new issues. In the US, lower farm incomes and large budget deficits could drive changes to farm programs, with crop insurance and direct payments currently dominating spending but being reexamined. Ongoing debates around climate change, nutrition, and rural development will also influence future agricultural policy development.