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- W1529127556 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 do the unthinkable--force 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. While the federal budget may force this policy change, economics is likely to justify it. The agricultural industry for which past policy goals and programs were designed is long gone. Yesterday's small farms have grown into today's commercial operations. Yesterday's domestic food market has evolved into today's global supermarket. And a rural America once dominated by barns and silos has been transformed into a diversified rural economy. In short, the policy of the past no longer works with an industry of the future. 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. This article outlines a new vision for U.S. agricultural policy. The first section reviews the budget imperative that is forcing the debate. The second section presents economic arguments that justify a redirection of policy. The final section explores four goals that mark the way to a new policy. THE BUDGET IMPERATIVE Agricultural policymakers have always had to work within budget parameters, but normally those parameters have required little change in programs. Today, writers of the 1995 farm bill are facing a budget imperative driven by plans to balance the federal budget by 2002. Before considering the budget targets that now confront Congressional writers of agricultural policy, it is useful to look at how the farm bill's money is spent. While many may think it covers only programs directly tied to production agriculture, the farm bill reaches all the way to an assortment of consumer food programs. The farm bill is actually many pieces of legislation held together under a broad umbrella. One way to illustrate the bill's many facets is to review the U.S. Department of Agriculture's annual budget. Setting aside the Forest Service, a large agency administered in the USDA but whose spending is overseen by the House and Senate Interior Committees, it is evident that farm and food programs dominate (Chart 1). (Chart 1 omitted) Food programs account for nearly two-thirds of department spending. These programs include food stamps, Women-Infants-and-Children (WIC), and school lunches. Farm programs, mainly price support programs for a handful of commodities, account for nearly a fifth of USDA spending. The smaller programs that round out USDA spending include conservation programs, including the Conservation Reserve Program, government-sponsored agricultural research, and rural development. With most farm bill dollars going to food and farm programs, therefore, it is not surprising that a legislative battle is brewing over whether spending cuts will come at the expense of farmers or consumers. …" @default.
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- W1529127556 date "1995-07-01" @default.
- W1529127556 modified "2023-09-24" @default.
- W1529127556 title "A New Vision for Agricultural Policy" @default.
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