Agricultural Policy in the United States: Evolution and Economics

Book Preface

The purpose for this book is to present the evolution of past government policies which has resulted in today’s legislation affecting U.S. agriculture and the consumers of U.S. agricultural commodities. As background, the processes by which agricultural policies are developed by Congress are presented. In each of the chapters economic principles are used to analyze the evolution of implemented agricultural legislation.
Agricultural public policy is defined by Knutson et al. (2004) as “…a guiding prin-ciple leading to a course of action or specific program that is pursued by the govern-ment.” Halcrow et al. (1994) defines it as “…a deliberate course of action…chosen and followed by a public body, private firm, family or individual.”
In 1805, Sir James Steuart presented a concise and pragmatic approach to govern-ment policy in general with the statement:

The best way to govern a society, and to engage everyone to conduct himself according to a plan, is for the statesman to form a system of administration, the most consistent possible with the interest of every individual, and never to flatter himself that his people will be brought to act in general, and in matters which purely regard the public, from any other principle than private interest.

The evolution of U.S. agricultural, food, conservation, and rural policies has basically followed Steuart’s description.
Agricultural policy is made through the actions of three major actors. These actors include those directly involved with the producing, processing, and selling of food and fiber and those not directly involved in production.
Those not directly involved in production agriculture include most of the legislators who pass laws related to food and fiber. The production of agricultural policies by Congress can be a slow- moving response to constituent demand or “Black Swan” events can occur, forcing immediate policy responses by Congress that range from modest renovations in current policies to the complete replacement of those policies.1
Chapter 1 defines agricultural policy. Chapter 2 might be characterized as Economics 100 applied to analyzing agricultural policies. Subsequent chapters include an over-view of the policy- making process, arguments for and against an agricultural policy, and an overview of the evolution of agricultural policies from ancient times to today. International trade issues are briefly discussed, given its importance to agriculture and increasing globalization of trade. Discussion of the effects of current “Black Swan” events and legislative responses, including the 2018 farm bill, are featured in the final chapters.

A glossary and overview of agricultural definitions and programs can be found in a 2005 report by Jasper Womach of the Congressional Research Service (CRS).
Note
1 According to Taleb, “Black Swans” are unpredictable events that negatively impact markets,causing investment losses. A loss of faith resulting from such events can increase the vulner-ability to future Black Swans.

References
Halcrow, Harold G., Robert G.F. Spitze, and Joyce E. Allen- Smith. 1994. Food and Agricultural
Policy, Economics and Politics. McGraw Hill Inc.
Hanson, John Mark. 1991. “Gaining Access” Congress and the Farm Lobby 1919– 1981. The
University of Chicago Press.
Knutson, Ronald D., J.B. Penn, Barry L. Flinchbaugh. 2004. Agricultural and Food Policy, 5th
edition. Pearson, Prentice Hall.
Steuart, Sir James. 1954. “‘On Government Regulation’: From an Inquiry into the Principles of
Political Economy,” in Philip C. Newman, Arthur D. Gayer, and Milton H. Spencer (eds.), Source Readings in Economic Thought. W.W. Norton and Company Inc.
Taleb, Nassim Nicholas. 2010. The Black Swan: The Impact of the Highly Improbable.
Random House.
Womach, Jasper. 2005. Agriculture: A Glossary of Terms, Programs, and Laws, 2005 Edition. Congressional Research Service Report. Available online: http:// ftp.ncs eonl ine.org/ nle/ crs repo rts/ 05jun/ 97- 905.pdf.