Policy Defn: Guiding principle leading to course of action or - - PowerPoint PPT Presentation

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Policy Defn: Guiding principle leading to course of action or - - PowerPoint PPT Presentation

Policy Defn: Guiding principle leading to course of action or specific program pursued by governments Rationale for what we do (basis for action) Programs (or policy tools) implement policy Examples: Policy Reduce global


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Policy

  • Defn: Guiding principle leading to course of

action or specific program pursued by governments

ü Rationale for what we do (basis for action)

  • Programs (or policy tools) implement policy
  • Examples:

üPolicy – Reduce global warming üPrograms – Cap and trade program

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Agricultural and Food policy

  • Principles that guide government programs

that influence: üProduction üResources used and how they are used üDomestic and international markets üFood consumption üConditions under which rural people live

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Why Do You Think We Study Ag Policy?

  • Give me something to do?
  • Quite simply… if you want to know how to

influence policy and political outcomes you have to understand how it is made and influencing decision makers

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More than domestic farm programs that support farm prices and/or incomes

  • Retirement of fragile land from production (CRP)
  • Negotiation to reduce barriers to trade (WTO)
  • Resource allocation, development and pricing
  • Food safety and terrorism
  • Supplemental Nutrition Assistance Program

(SNAP)

  • Child nutrition (WIC)
  • Renewable Fuels
  • Now… climate change
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Federal receipts and outlays

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How much does Agriculture Matter to the U.S. economy?

  • Depends
  • What do you call agriculture?
  • Do you define it by:

ü What Ag committees have responsibility for? ü Production only?

  • Farming accounts for 1.4% of workforce

and .7% of GDP

  • Entire food and fiber system accounts for

17% of workforce and 12% of GDP

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Federal receipts and outlays

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Mandatory Spending Baseline for the 2008 Farm Bill Programs and Provisions, by Title, ($M), FY 2014-23

Source: CBO February 2013 Baseline

For Perspective – for all the excitement and press received, commodity programs account for only 0.15% of the U.S. Budget

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Baseline Payments ($M) and Planted Acres, Major Program Crops, 2013-22

89.1 Mil Ac 76.4 Mil Ac 54.5 Mil Ac 11.25 Mil Ac 2.97 Mil Ac 1.38 Mil Ac

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Policies and programs are constantly changing – Forces of Change

  • Instability of agriculture
  • Globalization
  • Technology
  • Food safety
  • Environment
  • Industrialization
  • Politics
  • Unforeseen events
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Why Do You Think These Groups Would Contract With Us to Do Economic Analyses for them?

  • Texas Corn Producers
  • USA Rice Federation
  • Texas Deer Association
  • McGuire, Craddock & Strother, PC
  • USDA Risk Mgmt Agency
  • John Deere
  • National Crop Insurance

Services

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