Policy Considerations in New Crops Development

Profitable new crop alternatives have been needed by US farmers for most of the peacetime history of the nation but evidence of comprehensive strategic planning is lacking. Lack of new crop options has been very costly in economic, environmental, social, and political terms and the US trails several countries in strategic planning for new crops development. The long-term, high-risk nature of new crops development is a common barrier to mobilizing private sector interest. Thus, voice, public funding, and leadership, are essential. But competition for resources and the attention of Congress is fierce. A key opportunity and challenge is to develop and present compelling evidence to convince policy makers of their responsibility to legislate for R&D incentives to stimulate new crops development. The European Community (EC) is advanced in doing this. Australia and New Zealand are intermediate in their activities. Global alliances for sharing the risks and the benefits of such developments would advance a strategic approach. United States leadership would strengthen US and world agriculture sustainability. Economic theory predicts under-investment in agricultural research because it is too easy for “free-riders” to benefit from investments while the investor may not realize acceptable rates of return (Alston et al. 1994). This concept can apply to individuals, companies, states, nations, or groups of nations. The situation is even worse for investment with the higher risks and the longer-term nature of new crops development. Yet, new crops development will be needed even more as widespread adoption of the GATT (General Agreement on Tariffs and Trade) and NAFTA (North American Free Trade Agreement) increases exposure of traditional agricultural crops to free-market forces. Two key questions are pertinent: (1) is it wise public policy to invest public resources in new crops development? and (2) if the investment is wise, what should be the mechanism for policy development? The objectives of this paper are: (1) to provide reasons why new crops development is needed, (2) to provide evidence that new crops development policy changes are needed, (3) to identify selected barriers to change, and (4) to make policy recommendations to bring about needed changes.