THE US Farm Bill strengthens US agricultural protectionism instead of embracing real reform, according to the Australian Bureau of Agricultural and Resource Economics.

In a report released today, ABARE says the Farm Bill, which was released in May, increased support for most major crops, provided greater certainty for disaster relief and extended the payment threshold for dairy and sugar arrangements that minimise imports.

ABARE executive director, Phillip Glyde, said the changes in the Bill increased opportunities for US farmers to receive government support, "even in instances when market prices are well above historical support prices and the target prices set in the current Bill".

"Most of the support under the Farm Bill is for the major grains, oilseeds, cotton, dairy products and sugar which together account for about 40 per cent of the total value of US agricultural production," Mr Glyde said.

"The buoyant market conditions when the Bill was developed might have been expected to provide an opportunity to reduce or eliminate the market distortionary effects of US farm protection with few adjustment costs.

"The new US Farm Bill represents an opportunity lost to bring meaningful and beneficial reform to US agricultural policies."