Agricultural Policy Analysis: The Good, The Bad, and The Ugly

Agriculture is one of the most protected and regulated industries in the modern global economy. In most cases, at least in developed economies, protection largely serves to transfer economic welfare from taxpayers to producers, and to a certain extent, to consumers. No single method is absolutely preferred to any other since all have strengths and shortcomings. Progress in the profession is largely based upon criticism from the peers and colleagues. However, the absolute opinions that sometimes underlie such criticisms can impede the progress of knowledge by dismissing large bodies of research based upon alternative approaches. Agricultural policy developments are occurring in areas that are particularly amenable to and dependent on empirical analysis. From the very beginning, statistical and econometric analysis was directed toward solving agricultural policy problems.