Agriculture and ISO 14000

Many agricultural firms are now considering the environmental consequences of their activities as a means to obtain a competitive advantage. The shift is highlighted by the significant interest in standardized private codes such as those found in ISO 14000. These standardized codes are characterized by signatory firms voluntarily agreeing to abide by a given set of environmental management principles with monitoring conducted by an outside party. Government policy makers are also interested in the ability of such codes to address environmental concerns related to agriculture. This paper examines the feasibility of ISO 14000 for agricultural producers and the policy issues surrounding its application. The costs to an individual firm largely depend upon the availability of an environmental management system and the extent of the changes required under the system. The potential rewards are related to lower costs from reduced input use or lower premiums and increased revenue from new customers or market premiums. Net benefits to ISO 14001 certification will be greater for producers marketing food products than for firms selling a bulk commodity far removed from final consumption. Policy concerns related to ISO 14000 include providing institutional support for promotion and training, tying environmental regulations to the code, and the lack of public accountability in the setting of standards. (C) 2000 Elsevier Science Ltd. All rights reserved.