The US food and agriculture system is among the most productive and dynamic in the world, built and strengthened by its ability to respond rapidly to changing markets, and to economic threats as they emerge. This capacity reflects the system’s capacity to use new technologies from public and private sources and take advantage of growing economies of scale along with increasingly efficient farming methods.

Increasingly, however, market signals are being obscured by pressures from other sources—from pervasive new governmental regulations as well as social pressures from environmental groups, food safety advocates, populist agrarian groups and others aiming to curb perceived abuses. There is considerable concern in the farm community regarding recent court and Environmental Protection Agency (EPA) actions that could negatively affect U.S. farmers competitiveness, hinder their ability to produce food by increasing their costs, overburden them with regulations and increase their liability.

The breadth of new and proposed regulations that impact agriculture is unprecedented and promises to have a profound effect on the structure and competitiveness of the industry. In addition to the new rules imposed by new laws, the industry is increasingly responding directly to activist threats with self-imposed regulations that go far beyond existing legislation, trends that seem likely to accelerate as they reflect a growing public awareness of environmental issues, often fueled by media reports touting the latest perceived risks of particular behaviors or environmental trends.