Agricultural Policy

Ever wondered about the process that goes into getting you your favorite snack or meal? Many consumers are unfamiliar with the procedures that bring foods from the farm to their dinner tables. Agricultural Policy, or regulations and laws concerning agriculture and food distribution, can be credited for the safe and efficient deliverance of each country’s various cuisines. These policies are usually implemented by the government with the intent of protecting the health and well-being of consumers.

Here in the United States, agricultural policy is regulated by Congress, with the passing of food bills that include the governance of everything from Food Stamps & Nutrition to Crop insurance. In accordance, the Environmental Protection Agency (EPA) is responsible for creating policies that protect and benefit the environment when it comes to agriculture and many other things.

In recent years, Congress has attempted to alter the current farm bill due to its expiration and their efforts to lower policy expenses. The replacement policy is projected to cost $956.4 billion, cutting costs by $16.5 billion over the next 10 years. These cuts are to be made in every area of US Agricultural Policy, with the exception of Crop Insurance, or the additional money provided to farmers to reimburse them for deductibles paid for insurance, and to protect farmers in the event of low prices or crop failure. Other areas of the farm bill include Food Stamps & Nutrition, which is the highest funded area, using $756 billion over 10 years. This focuses on providing food to individuals who do not have the income or purchasing power to do so on their own. Conservation ($56 B), the policy to protect farmers against soil erosion, trade ($3.5 B), and alternative energy use ($1.1 B), are also included in the bill as lesser, but still economically prominent funded policies.

With everyone sharing different views on what is important, this new bill has received mixed reviews, as many policies do. Some view crop subsidies as negative, believing it is unnecessary to pay farmers additional money to keep food prices low and protect farms. In the US, because of our country’s wealth and the small impact higher food prices would have on consumption, it is particularly viewed as unnecessary. Others are against the decline in Food Stamp funding, believing it to hinder the well-being of families who actually need assistance. Despite these arguments, the Senate and House have come to a compromise on what they believe to be in the best interest of consumers and farmers alike.

In contrast to the US, the European Union runs its policies through The Common Agricultural Policy (CAP). CAP instills policies in European countries that focus on European preference over international brands, communal treasury funding, a unified market, and equal income for farmers. With each country’s CAP funding different, France is currently allocated the most money. They are also responsible for the creation of Common Market Organizations (CMOs), which break various foods into categories and provide universal regulations for all farmers or producers of that food.

Similar to the US, CAP has recently proposed some changes to its current policies to diversify the agricultural economy in Europe and hopefully lower the high food prices, as well as to provide safe food, animal welfare and break the bond between subsidies and production. The implementing of these changes will come through a 300,000 euro cap on subsidies, assuring all state farmers receive 65% of funds allocated by the EU to farmers. They also intend to end sugar production quotas to aid those in less wealthy countries and to make strides in green agriculture. As opposed to the US, more shifts in funding are occurring as opposed to outright cuts. Currently the EU and CAP will be looking rearrange their 132.8 B Euro Agricultural Policy budget to hopefully better food production and consumption in Europe.