This article investigates aspects of the institutions and decision making processes in the United States and the European Union that affect the coordination of domestic farm programs and trade negotiations for agriculture in each entity. We explore how current institutions and processes contribute to a level of incoherence - or lack of coordination - between domestic farm programs and trade negotiations in the United States. Constructs from transaction cost politics with an emphasis on the decision to delegate authority from the principal to an agent are used to understand how institutional processes affect the coordination of domestic legislation.