Agricultural policy

Agricultural policies take into consideration the primary (production), secondary (such as food processing, and distribution) and tertiary processes (such as consumption and supply in agricultural products and supplies). Outcomes can involve, for example, a guaranteed supply level, price stability, product quality, product selection, land use or employment. Governments can use tools like rural development practices, agricultural extension, economic protections, agricultural subsidies or price controls to change the dynamics of agricultural production, or improve the consumer impacts of the production.

Agricultural policy has wide reaching primary and secondary effects. Agriculture has large impacts on climate change, with land use, land-use change, and forestry estimated to be contributing 13–21% of global annual emissions as of the 2010s. Moreover, agricultural policy needs to account for a lot of shocks to the system: for example, agriculture is highly vulnerable to the negative impacts of climate change, such as decreases in water access, geophysical processes such as ocean level rise and changing weather, and socioeconomic processes that affect farmers, many of whom are in subsistence economic conditions. In order for global climate change mitigation and adaptation to be effective a wide range of policies need to be implemented to reduce the risk of negative climate change impacts on agriculture and greenhouse gas emissions from the agriculture sector.

Agriculture policy concerns

An example of the breadth and types of agriculture policy concerns can be found in the Australian Bureau of Agricultural and Resource Economics article "Agricultural Economies of Australia and New Zealand" which says that the major challenges and issues faced by their industrial agriculture industry are:

• marketing challenges and consumer tastes
• international trading environment (world market conditions, barriers to trade, quarantine and technical barriers, maintenance of global competitiveness and market image, and management of biosecurity issues affecting imports and the disease status of exports)
• biosecurity (pests and diseases such as bovine spongiform encephalopathy (BSE), avian influenza, foot and mouth disease, citrus canker, and sugarcane smut)
• infrastructure (such as transport, ports, telecommunications, energy and irrigation facilities)
• management skills and labor supply (With increasing requirements for business planning, enhanced market awareness, the use of modern technology such as computers and global positioning systems and better agronomic management, modern farm managers will need to become increasingly skilled. Examples: training of skilled workers, the development of labor hire systems that provide continuity of work in industries with strong seasonal peaks, modern communication tools, investigating market opportunities, researching customer requirements, business planning including financial management, researching the latest farming techniques, risk management skills)
• coordination (a more consistent national strategic agenda for agricultural research and development; more active involvement of research investors in collaboration with research providers developing programs of work; greater coordination of research activities across industries, research organisations and issues; and investment in human capital to ensure a skilled pool of research personnel in the future.)
• technology (research, adoption, productivity, genetically modified (GM) crops, investments)
• water (access rights, water trade, providing water for environmental outcomes, assignment of risk in response to the reallocation of water from consumptive to environmental use, accounting for the sourcing and allocation of water)
• resource access issues (management of native vegetation, the protection and enhancement of biodiversity, sustainability of productive agricultural resources, and landholder responsibilities)

Poverty reduction

Policymakers working in poverty reduction in the agriculture sector assess, plan, or enact policies aimed to address the needs of persons living in poverty. Agriculture has been a critical driver of poverty reduction in most developing countries, particularly in rural areas. Approximately 80% of the world's impoverished population, who primarily reside in rural areas and earn their livelihood through farming, can benefit from agriculture in terms of poverty reduction, income generation, and food security. Fostering agricultural development is therefore a crucial element of agricultural policy in a developing country. In addition, a recent Natural Resource Perspective paper by the Overseas Development Institute found that good infrastructure, education and effective information services in rural areas were necessary to improve the chances of making agriculture work for the poor.

During the 1980s and 1990s, there was a disregard for the agriculture sector among policymakers and investors, only regaining interest when the prices of staple food crops experienced a significant increase in the mid-2000s. As a result of agricultural policy neglect, there has been a scarcity of investment in infrastructure, which has hindered agricultural development and public goods, such as education, research and development and technology. Rural productive sectors and small agricultural enterprises suffer from market failures due to policies favouring urban areas and lending policies biased against small-scale agricultural firms. Neglect in implementing agriculture policy has been detected in several developing countries. In Indonesia, since the 1997 Asian financial crisis, the government's agricultural policy has been closely concentrated on achieving price stability and self-sufficiency for import-competing commodities, such as palm oil, sugar and rice.

International agencies such as the Food and Agriculture Organization (FAO), the World Bank, the International Fund for Agricultural Development (IFAD) and the Organisation for Economic Co-operation and Development (OECD), espouse the prioritisation of agricultural endeavours to support poverty reduction. The impact of agricultural policy on reducing poverty differs across countries and is influenced by a variety of factors, such as the level of government policy support, the degree of public and private investment in agriculture, the different types of agriculture, and the growth rates of agriculture parallel to non-agriculture sectors. In particular, investment in agricultural research and development has been shown to be highly influential on agricultural GDP growth and poverty reduction. Government policies play a key role in promoting agricultural activities, such as irrigation systems, roads and telecommunication systems, land reform, power in rural areas, fiscal support for research and development, pricing policies, assistance for new technologies, and markets for agricultural produce. Agricultural policies have contributed to meeting the goals related to increasing, diversifying, and improving agricultural production.

Agricultural policies aimed at reducing poverty include India's Pradhan Mantri Fasal Bima Yojana, which offers crop insurance to farmers to protect them from weather-related uncertainties and potential crop failures. This initiative provides farmers with financial aid for crop loss, reducing the risk of falling into poverty. Rwanda's Crop Intensification Program is another example of such policy, which provides farmers with inputs like fertilisers, improved seeds, and pesticides, as well as training and technical support to help them adopt more efficient farming practices. However, for agricultural policies to contribute to poverty reduction, it is essential that they collaborate effectively and cohesively with other sectors, such as tourism, sustainable economy, and industry.

Biosecurity

The biosecurity concerns facing industrial agriculture can be illustrated by:

• the threat to poultry and humans from H5N1; possibly caused by the use of animal vaccines
• the threat to cattle and humans from bovine spongiform encephalopathy (BSE); possibly caused by the unnatural feeding of cattle to cattle to minimize costs
• the threat to industry profits from diseases like foot-and-mouth disease and citrus canker which increasing globalization makes harder to contain

Avian influenza

The use of animal vaccines can create new viruses that kill people and cause flu pandemic threats. H5N1 is an example of where this might have already occurred. According to the CDC article "H5N1 Outbreaks and Enzootic Influenza" by Robert G. Webster et al.: "Transmission of highly pathogenic H5N1 from domestic poultry back to migratory waterfowl in western China has increased the geographic spread. The spread of H5N1 and its likely reintroduction to domestic poultry increase the need for good agricultural vaccines. In fact, the root cause of the continuing H5N1 pandemic threat may be the way the pathogenicity of H5N1 viruses is masked by co-circulating influenza viruses or bad agricultural vaccines." Robert Webster explains: "If you use a good vaccine you can prevent the transmission within poultry and to humans. But if they have been using vaccines now [in China] for several years, why is there so much bird flu? There is bad vaccine that stops the disease in the bird but the bird goes on pooping out the virus and maintaining it and changing it. And I think this is what is going on in China. It has to be. Either there is not enough vaccine being used or there is substandard vaccine being used. Probably both. It's not just China. We can't blame China for substandard vaccines. I think there are substandard vaccines for influenza in poultry all over the world."

In response to the same concerns, Reuters reports Hong Kong infectious disease expert Lo Wing-lok indicating that vaccines have to take top priority. Julie Hall, who is in charge of the WHO's outbreak response in China, claimed that China's vaccinations might be masking the virus. The BBC reported that Wendy Barclay, a virologist at the University of Reading, UK said: "The Chinese have made a vaccine based on reverse genetics made with H5N1 antigens, and they have been using it. There has been a lot of criticism of what they have done because they have protected their chickens against death from this virus but the chickens still get infected, and then you get the drift - the virus mutates in response to the antibodies - and now we have a situation where we have five or six 'flavours' of H5N1 out there."

Bovine spongiform encephalopathy

Bovine spongiform encephalopathy (BSE), commonly known as "mad cow disease", is a fatal, neurodegenerative disease of cattle, which infects by a mechanism that surprised biologists upon its discovery in the late 20th century. In the UK, the country worst affected, 179,000 cattle were infected and 4.4 million were killed as a precaution. The disease can be transmitted to human beings who eat or inhale material from infected carcasses. In humans, it is known as new variant Creutzfeldt–Jakob disease (vCJD or nvCJD), and by June 2007, it had killed 165 people in Britain, and six elsewhere with the number expected to rise because of the disease's long incubation period. Between 460,000 and 482,000 BSE-infected animals had entered the human food chain before controls on high-risk offal were introduced in 1989.

A British inquiry into BSE concluded that the epidemic was caused by feeding cattle, who are normally herbivores, the remains of other cattle in the form of meat and bone meal (MBM), which caused the infectious agent to spread. The origin of the disease itself remains unknown. The current scientific view is that infectious proteins called prions developed through spontaneous mutation, probably in the 1970s, and there is a possibility that the use of organophosphorus pesticides increased the susceptibility of cattle to the disease. The infectious agent is distinctive for the high temperatures it is able to survive; this contributed to the spread of the disease in Britain, which had reduced the temperatures used during its rendering process. Another contributory factor was the feeding of infected protein supplements to very young calves instead of milk from their mothers.

Foot-and-mouth disease

Foot-and-mouth disease is a highly contagious and sometimes fatal viral disease of cattle and pigs. It can also infect deer, goats, sheep, and other bovids with cloven hooves, as well as elephants, rats, and hedgehogs. Humans are affected only very rarely. FMD occurs throughout much of the world, and while some countries have been free of FMD for some time, its wide host range and rapid spread represent cause for international concern. In 1996, endemic areas included Asia, Africa, and parts of South America. North America, Australia, New Zealand and Japan have been free of FMD for many years. Most European countries have been recognized as free, and countries belonging to the European Union have stopped FMD vaccination.

Infection with foot-and-mouth disease tends to occur locally, that is, the virus is passed on to susceptible animals through direct contact with infected animals or with contaminated pens or vehicles used to transport livestock. The clothes and skin of animal handlers such as farmers, standing water, and uncooked food scraps and feed supplements containing infected animal products can harbor the virus as well. Cows can also catch FMD from the semen of infected bulls. Control measures include quarantine and destruction of infected livestock, and export bans for meat and other animal products to countries not infected with the disease.

Because FMD rarely infects humans but spreads rapidly among animals, it is a much greater threat to the agriculture industry than to human health. Farmers around the world can lose huge amounts of money during a foot-and-mouth epidemic, when large numbers of animals are destroyed and revenues from milk and meat production go down. One of the difficulties in vaccinating against FMD is the huge variation between and even within serotypes. There is no cross-protection between serotypes (meaning that a vaccine for one serotype won't protect against any others) and in addition, two strains within a given serotype may have nucleotide sequences that differ by as much as 30% for a given gene. This means that FMD vaccines must be highly specific to the strain involved. Vaccination only provides temporary immunity that lasts from months to years. Therefore, rich countries maintain a policy of banning imports from all countries, not proven FMD-free by US or EU standards. This is a point of contention.

Although this disease is not dangerous to humans and rarely fatal to otherwise healthy animals, it reduces milk and meat production. Outbreaks can be stopped quickly if farmers and transporters are forced to abide by existing rules. Therefore, (besides temporary discomfort to the animals), any outbreak in the rich world should not be much more as a localized, cyclical economic problem. For countries with free roaming wildlife it is nearly impossible to prove that they are entirely free of this disease. If they try they are forced to erect nationwide fences, which destroys wildlife migration. Because detecting and reporting of FMD have enormously improved and sped up, almost all poor countries could now safely create FMD-free export zones. But rich countries refuse to change the rules. In effect, many poor tropical countries have no chance to meet current rules, so they are still today banned from exporting meat, even if many of them are FMD-free.

The result is that if drought hits, the poor try to cope by selling their few animals. This quickly saturates regional demand. The export ban then destroys the value of these animals, in effect destroying the most important coping mechanism of several hundreds of millions extremely poor households. The rules around meat exports have been changed many times, always to accommodate changing circumstances in rich countries, usually further reducing meat export chances for poor countries. For that reason, Kanya and many other countries find the rules very unjust. They are however discouraged to file a formal complaint with WTO by diplomats from rich countries.

Citrus canker

Citrus canker is a disease affecting citrus species that is caused by the bacterium Xanthomonas axonopodis. The infection causes lesions on the leaves, stems, and fruit of citrus trees, including lime, oranges, and grapefruit. While not harmful to humans, canker significantly affects the vitality of citrus trees, causing leaves and fruit to drop prematurely; a fruit infected with canker is safe to eat but too unsightly to be sold. The disease, which is believed to have originated in South East Asia, is extremely persistent when it becomes established in an area, making it necessary for all citrus orchards to be destroyed for the successful eradication of the disease. Australia, Brazil and the United States are currently experiencing canker outbreaks.

The disease can be detected in orchards and on fruit by the appearance of lesions. Early detection is critical in quarantine situations. Bacteria are tested for pathogenicity by inoculating multiple citrus species with the bacterium. Simultaneously, other diagnostic tests (antibody detection, fatty-acid profiling, and genetic procedures using PCR) are conducted to identify the particular canker strain. Citrus canker outbreaks are prevented and managed in a number of ways. In countries that do not have canker, the disease is prevented from entering the country by quarantine measures. In countries with new outbreaks, eradication programs that are started soon after the disease has been discovered have been successful; such programs rely on the destruction of affected orchards. When eradication has been unsuccessful and the disease has become established, management options include replacing susceptible citrus cultivars with resistant cultivars, applying preventive sprays of copper-based bactericides, and destroying infected trees and all surrounding trees within an appropriate radius.

The citrus industry is the largest fresh-fruit exporting industry in Australia. Australia has had three outbreaks of citrus canker; all three were successfully eradicated. The disease was found twice during the 1900s in the Northern Territory and was eradicated each time. During the first outbreak in 1912, every citrus tree north of latitude 19° south was destroyed, taking 11 years to eradicate the disease. In 2004, Asiatic citrus canker was detected in an orchard in Emerald, Queensland, and was thought to have occurred from the illegal import of infected citrus plants. The state and federal governments have ordered that all commercial orchards, all non-commercial citrus trees, and all native lime trees (C. glauca) in the vicinity of Emerald be destroyed rather than trying to isolate infected trees.

Food security

The United Nations Food and Agriculture Organization (FAO) defines food security as existing when "all people, at all times, have physical and economic access to sufficient safe and nutritious food that meets their dietary needs and food preferences for an active and healthy life". The four qualifications that must be met for a food secure system include physical availability, economic and physical access, appropriate utilization, and stability of the prior three elements over time.

Of the 6.7 billion people on the planet, about 2 billion are food insecure. As the global population grows to 9 billion by 2050, and as diets shift to emphasize higher energy products and greater overall consumption, food systems will be subjected to even greater pressure. Climate change presents additional threats to food security, affecting crop yields, distribution of pests and diseases, weather patterns, and growing seasons around the world.

Food security has thus become an increasingly important topic in agricultural policy as decision makers attempt to reduce poverty and malnutrition while augmenting adaptive capacity to climate change. The Commission on Sustainable Agriculture and Climate Change listed high-priority policy actions to address food security, including integrating food security and sustainable agriculture into global and national policies, significantly raising the level of global investment in food systems, and developing specific programs and policies to support the most vulnerable populations (namely, those that are already subject to food insecurity).

Food sovereignty

'Food sovereignty', a term coined by members of Via Campesina in 1996, is about the right of peoples to define their own food systems. Advocates of food sovereignty put the people who produce, distribute, and consume food at the centre of decisions on food systems and policies, rather than the demands of markets and corporations that they believe have come to dominate the global food system. This movement is advocated by a number of farmers, peasants, pastoralists, fisherfolk, indigenous peoples, women, rural youth, and environmental organizations.