Journal Article

A new vision for agricultural policy

Abstract: After six decades of evolution, U.S. agricultural policy may be about to enter a revolution. Ever since farm programs were created in the 1930s, farm policy has generally evolved along predictable lines. To be sure, over the past decade policy has tended to move in a market direction, but the goals and policy instruments remain amazingly akin to those put in place during the Great Depression. Now, federal fiscal discipline may cause the nation to rethink an antiquated farm policy and replace it with a much leaner, more targeted policy to answer the nation's food needs for the next century.> With the budget forcing change and economics supporting it, the question is, where should agricultural policy go? Debate on the 1995 farm bill has focused almost entirely on the budget, while neglecting the more important question. A new vision for agricultural policy is lacking, mainly because current arguments center on whether to maintain the status quo. But the status quo is unlikely to stand. Rather, the future of agricultural policy lies in the pursuit of four key goals: competing in world food markets, improving the nation's diet, conserving the nation's natural resources, and increasing economic opportunity in rural America. In combination, these goals will encourage continued growth in the agricultural sector, enhance the welfare of consumers, and have the added benefit of requiring considerably less government involvement than in the past.> Drabenstott and Barkema develop a new vision for U.S. agricultural policy. First, they review the budget imperative that is forcing the debate. Second, they present three economic arguments that justify a redirection of policy. Finally, they explore four goals that mark the way to a new policy.

Keywords: Agricultural industries - Finance; Agriculture;

Bibliographic Information

Provider: Federal Reserve Bank of Kansas City

Part of Series: Economic Review

Publication Date: 1995

Volume: 80

Issue: Q III

Pages: 63-78