Since before the founding of the United States, farmers received support through a series of markedly different policy approaches. Policy has at different times focused on distribution of the Nation's vast land resources, on increasing the productivity and standard of living of American farmers, and on assisting farmers in marketing their products. From the 1930s, U.S. farm policy focused on price and income supports. Until 1996, farm policy relied in part on supply management in the form of acreage limits and storage programs.
Agricultural policy in the past 20 years has broadened considerably to include
agricultural trade issues, food safety, food assistance, and conservation and
environmental concerns, in addition to the more traditional focus on commodities.
Beginning in 1985, agricultural commodity policy underwent significant changes
that have moved toward greater market orientation and reduced government involvement.
Farmers' planting and business decisions were to be guided more by market developments
than by the terms and expectations of commodity policies. See the Program Provisions and Farm Policy History section of the Recommended Readings page for selected reports
for the 1977 Farm Act through the 2008 farm bill debate.
Policy in recent years has also addressed environmental and conservation issues and food safety. Concern with liberalizing world trade and competing in world markets has reinforced efforts to reduce government support and increase the flexibility of farmers to make production and marketing decisions on the basis of supply and demand conditions.
Debate over support to agricultural producers involves a diverse group of stakeholders with different and sometimes conflicting goals. The range and importance of interest groups concerned with agriculture is expanding, even while the direct contribution of farming to national gross domestic product is declining over time. Increased personal incomes in the United States have increased the demand for safe and healthful food products and for "public goods" such as environmental quality and preservation of rural landscapes.
Selected concerns of agricultural policy
interest groups |
Small family farmers |
|
Limited-resource farmers |
Income support; credit; education |
Farming as primary occupation, low sales
(<$100,000) |
Price and income support; credit; education |
Farming as primary occupation, high sales
($100,000-$249,999) |
Price and income support; price
stability; credit; education; risk management |
Retirement |
Income support not tied to production; higher
land values |
Residential/lifestyle |
Freedom to pursue lifestyle |
|
Other family farmers |
|
Large farms (sales $250,000-$499,000) |
Higher and more stable prices; freedom from
government regulations; risk management |
Very large farms (sales $500,000+) |
Higher and more stable prices; freedom from
government regulations; risk management |
|
Agribusiness |
|
Nonfamily farms |
Higher and more stable prices; freedom from
government regulations; risk management |
Processors |
Adequate high-quality supplies; low input
prices; high processed product prices; strong export markets |
Throughput companies |
Adequate consistent-quality supplies; strong
export markets |
|
Taxpayers |
|
National |
Low program costs; low administrative costs |
Regional |
Higher local tax revenue from increased
incomes and higher land prices |
|
Consumers |
Low food prices, food safety; adequate food
supplies; variety of food types; healthful food |
|
Environmentalists |
|
Conservationists |
Prevention of soil erosion
Preservation of farmland |
Water quality advocates |
Agricultural practices that limit migration
of agrichemicals from farms to surface and ground water |
Wilderness advocates |
Maintenance of open space |
Animal rights advocates |
Humane treatment of animals |
|
Rural communities |
|
Long-time residents |
Maintenance of traditional communities and
rural lifestyle; employment opportunities; open space
preservation; viability of rural communities |
New residents |
Open space; odor control; rural landscapes |
Tourists |
Rural landscapes; recreational/heritage
activities |
|
Social welfare advocates |
|
Civil rights advocates |
Adequate economic opportunities for minorities;
opportunities for minority farmers |
Anti-poverty advocates |
Provision of minimum income levels for rural
residents |
Agrarians |
Maintenance of viable agriculture, small
scale agriculture |
|
|