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overview
 Existing
U.S. farm programs have their origins in the 1930s, a period when
the well being of U.S. farm households and rural communities were
tightly linked. Although farms, farm households, and rural communities
at the beginning of the 21st century are vastly different, commodity-based
support programs continue to play a central role in U.S. agricultural
policy. This raises questions about whether current policies most
effectively target the needs of an evolving farm and rural economy.
Numerous questions arise about market responses to policy change,
and about the appropriate role of federal programs to facilitate
adjustment. What are the impacts of existing policies, how are they
distributed, and how would they change if policies change? Would
policy reform impose significant adjustment costs on large numbers
of farm households and/or rural communities? This briefing room
is designed to help fill this information gap and stimulate new
thinking that contributes to the ongoing policy debate. ERS research
casts a wide net—covering economic, environmental, rural household
and community welfare, and institutional implications—and extends
both upstream and downstream from the farmgate. More
overview...
contents
features
Peanut Policy Change
and Adjustment Under the 2002 Farm Act. By eliminating the longstanding
peanut marketing quota system, the 2002 Farm Act substantially altered
the policy environment for the U.S. peanut sector. Although peanut
prices and acreage declined following elimination of the marketing
quota, increased planting flexibility has allowed growers to expand
production in higher yielding areas, and sector revenues are expected
to be relatively stable.
Economic
Effects of U.S. Dairy Policy and Alternative Approaches to Milk
Pricing. The effects of dairy programs on markets are modest
and current dairy programs are limited in their ability to change
the longterm economic viability of dairy farms. Other forces—technology,
changing consumer demand, and changes in the marketing and processing
sectors—while difficult to measure, are likely to have more
impact. (This file is 1.5 MB in size and may take time to download.)
recommended readings
Rural
America: Opportunities and Challenges. At the beginning of the
21st century, rural America comprises 2,305 counties, contains 80
percent of the Nation's land, and is home to 56 million people.
The 2002 Farm Act: Provisions and
Implications for Commodity Markets. This report provides an
initial assessment of the legislation's effects on agricultural
production, commodity markets, and net farm income over the next
10 years. Results indicate that commodity market impacts are fairly
small. Net farm income is projected higher than under a continuation
of the 1996 Farm Act, largely reflecting an increase in government
payments.
Income, Wealth, and the Economic
Well-Being of Farm Households. Farm households draw income from
various sources, including off-farm work, other businesses and,
increasingly, nonfarm investments. Using an expanded definition
of economic well-being, the report shows that farm households as
a whole are better off than the average U.S. household, but that
6 percent remain economically disadvantaged.
See all recommended readings...
related data products
State Facts Sheets. Information on
population, employment, income, farm characteristics, and farm financial
indicators for all 50 States.
Farm Program Data
and Information. Data on various aspects of farm and commodity
policy, such as farm program participation rates, Commodity Credit
Corporation net outlays by commodity and function, and price support
loan activity.
Rural Gallery. Up-to-date
information on rural indicators, including population and demographics,
employment and unemployment, income and poverty, housing, industry,
rural credit and agricultural finance, and Federal funds to rural
America.
Measuring Rurality: County
Typology Codes. ERS classification of nonmetro counties by economic
activity and policy types.
Farm Financial Management Data.
Tables, graphs, and downloadable spreadsheets on farm business finances
and financial characteristics of farm households from the Agricultural
Resource Management Survey (ARMS).
Farm Income Data. Estimates of
farm sector income for the United States and individual States.
Farm Balance Sheet Data.
Estimates of farm business balance sheets—including asset,
debt, and equity information—for the United States and individual
States. The disaggregated balance sheets enable users to assess
the status and trends of wealth within the farm sector.
Agricultural Resources and Environmental
Indicators (AREI) Database and Mapping Tool. A web-based tool
that provides flexible data access and the latest GIS mapping technologies
for data on agricultural resources and environmental indicators.
recent research developments
In the United States and other countries, adjustment and change
in the farm sector and rural economy is an ongoing process. Producers
and rural communities must continually adapt to changing market
conditions, whether the result of agricultural policies or broader
economic developments such as technological innovations, shifting
demand, or macroeconomic conditions. ERS is investigating the impacts
of agricultural policy on commodity markets, prices, and farm income;
linkages between the farm sector and the rural economy; and farm
household financial well-being. Because each commodity sector, region
or country, and farm household faces unique conditions, ERS is also
researching the response of these groups to fundamental adjustments
in farm policy and other factors shaping change in the agricultural
sector. Contact: Erik Dohlman
or Carolyn Dimitri.
Workshop on Agricultural Policy
Links to Farm Households and the Rural Economy. Farm programs
have an impact on farm households and rural communities as well
as agricultural commodity markets. To address this important policy
area, the National Center for Food and Agricultural Policy and ERS
held a workshop on May 14, 2004, to broaden the information base
available to decisionmakers. The aim of the workshop was to go beyond
traditional considerations and begin to address farm policy's intended
and unintended consequences for farm households and rural America
well in advance of the next farm bill.
related briefing rooms
related links
USDA Farm Service Agency.
Commodity program information.
Federal
Reserve Bank of Kansas City, Center for the Study of Rural America.
Analysis of economic and policy issues related to rural America.
U.S. House of Representatives,
Committee on Agriculture. Farm legislation and legislative proposals.
U.S. Senate, Committee
on Agriculture, Nutrition, and Forestry. Farm legislation and
legislative proposals.
National Center for Food and Agricultural
Policy. Research studies on biotechnology, pesticides, international
trade and development, and farm and food policy.
Pennsylvania
State University, International Agricultural Policy Reform and Adjustment
Project. A research project on the reform of global agricultural
and trade policies and adjustment in the food and agricultural sector.
Regional rural development research centers. Research
and education programs to improve the well-being of rural people.
for more information, contact:
Stephen Vogel, Erik
Dohlman, or Jeffrey Hopkins
web administration: webadmin@ers.usda.gov
page updated: October 18,
2004
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