US agricultural policy process and the role of policy analysis

agricultural and food policies and government-supported commodities are reviewed in this paper, which focuses on the policy process that operated in the United States during debate on the 1985 Farm Bill and companion legislation on agricultural credit. Policymakers involved in the Farm Bill debate were faced with the task of reducing price support levels and budget costs while protecting farm income. Ultimately, the bill lowered price support levels, expanded export assistance funding, and substituted higher cash payments for the reduced price support levels. However, in so doing it virtually ignored budget constraints. The paper examines deficit reduction pressures and other factors that could lead to future policy changes. It is predicted that U.S. determination to become more competitive in world markets will significantly affect world prices for several major commodities. A discussion of the role of economic and policy analysis in the Farm Bill debate is also included. (Author abstract, modified)