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Reconsidering The Farm Problem Under An Industrializing Agricultural Sector

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  • Schweikhardt, David B.

Abstract

Traditional notions about the "farm problem" may have to be reconsidered in light of the changing economic characteristics of industrialized agriculture. These changing conditions will affect the opportunity set of policy alternatives available to policy makers in developed countries. Changes in four economic characteristics of the farm sector may affect the acceptability of policy alternatives: (1) An increasing integration of domestic and international markets; (2) An increasing differentiation of farm production intended for specific end uses; (3) An increasing demand for environmental quality, with the income elasticity of the demand for environmental quality being greater than the income elasticity of the demand for food; and (4) An increasing economic diversity in rural areas that erodes the remaining linkages between the commercial agricultural sector and the rest of the rural economy.

Suggested Citation

  • Schweikhardt, David B., 2000. "Reconsidering The Farm Problem Under An Industrializing Agricultural Sector," Staff Paper Series 11506, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    • Handle: RePEc:ags:midasp:11506
    DOI: 10.22004/ag.econ.11506
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    References listed on IDEAS

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    1. Michael Boehlje, 1999. "Structural Changes in the Agricultural Industries: How Do We Measure, Analyze and Understand Them?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(5), pages 1028-1041.
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    3. Browne, William P. & Allen, Kristen & Schweikhardt, David B., 1997. "Never Say Never Again: Why the Road to Agricultural Policy Reform Has a Long Way to Go," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 12(4), pages 1-6.
    4. Kym Anderson, 1987. "On Why Agriculture Declines with Economic Growth," Agricultural Economics, International Association of Agricultural Economists, vol. 1(3), pages 195-207, October.
    5. James T. Bonnen & David B. Schweikhardt, 1998. "The Future of U.S. Agricultural Policy: Reflections on the Disappearance of the "Farm Problem"," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 20(1), pages 2-36.
    6. Clark Edwards, 1959. "Resource Fixity and Farm Organization," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 41(4), pages 747-759.
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    2. Bonnen, James T., 2000. "Leonard K. Elmhirst Lecture: The Transformation of Agriculture and the World Economy: Challenges for the Governance of Agriculture and for the Profession," 2000 Conference, August 13-18, 2000, Berlin, Germany 197183, International Association of Agricultural Economists.

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