Background
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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 distributing the Nation's
vast land resources, increasing the productivity and standard of
living of American farmers, and 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 section of the Readings page for selected reports for the
1977 Farm Act through the 2008 Farm Act.
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 farmers' flexibility to
make production and marketing decisions based on 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.
Higher 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.
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Selected concerns of
agricultural policy interest groups
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| 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, including biofuels |
Higher and more stable prices; freedom from
government regulations; risk management |
| Processors, including biofuels |
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 |
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