Leland C. Thompson

Tradeoffs Between Agricultural and Chemical Policies

In modern U.S. agriculture there are numerous tradeoffs between agricultural and chemical policies. Chemicals are major inputs in agricultural production processes (for both crops and livestock). Agricultural chemicals, however, have negative environmental side effects that are not always considered by users (Benbrook 1988). Agricultural policies primarily are designed to stabilize commodity prices and enhance farm income, which in turn changes production levels, provides incentives for different intensities of factor use, and influences the loading of chemicals. In turn, chemical policies involving taxes, use restrictions, and registration requirements change the availability and prices of chemical inputs, alter agricultural production and cost levels, and affect agricultural income.