Journal Article

A new agricultural policy for a new world market

Abstract: A new farm bill will be enacted in 1995, and the debate over it has already begun. With farm bills being renewed just once every five years, the 1995 bill provides a propitious opportunity to re-evaluate the current bill in light of fundamental changes to the marketplace since the adoption of the 1990 bill. One of the most important changes since then has been in the world food market. Selling successfully in world markets is vital to U.S. agriculture because it produces far more food than domestic consumers require. Thus, while the upcoming farm bill will spawn debate on many issues, few will be more important than reconciling U.S. agricultural policy with a new world food market.> Recent developments in the world food market reflect basic changes in two key market features. The market for finished food products is much stronger than for bulk commodities. And the food market has been growing more rapidly in Asia and North America than in Europe. If these trends persist, will current farm policy be in step with the world food market of the future? Barkema and Drabenstott examine the factors likely to shape the world market and conclude that agricultural policy must be overhauled if U.S. agriculture is to excel in tomorrow's marketplace.

Keywords: Agriculture; Agriculture - Forecasting; Exports;

Bibliographic Information

Provider: Federal Reserve Bank of Kansas City

Part of Series: Economic Review

Publication Date: 1994

Volume: 79

Issue: Q II

Pages: 59-72