Institutions, Organizations, and Policies Affecting Agriculture: Protecting Family Farms, Species, and Food and Water Safety

In the United States, much social and environmental legislation required of nonfarm firms has eluded the farming industry. For the most part, the US government has used the “carrot” of payments rather than the “stick” of regulation to correct externalities in farming. Agriculture also has received large income transfers and favorable tax treatment to save family farms. The nation might have been better served by more resources devoted to building human capital of the disadvantaged and to reduce pathogens in food. Political failure, not market failure, has dominated agriculture. For sound political decisions, the political process needs to be better informed regarding the consequences of its policies.