Answer to Question #204473 in Microeconomics for C. Jones

Question

What are the reasons for and against treating agriculture differently from a legal and policy standpoint? Should agriculture be exempted from environmental, labor and antitrust laws.?

Answer 1

Solution:

The reasons for treating agriculture differently from a legal and policy standpoint include protecting and securing land and guaranteeing food security. Agriculture is a vital sector that is the backbone of any nation since it provides for the basic requirements to survive. As such, agriculture should be treated differently from a legal and policy standpoint. This is to avoid making agricultural policies so rigid that they discourage food production which is an essential commodity in society. Agriculture should not be highly regulated and different approaches should be adopted to ensure sustainability in the food sector.

The reasons against treating agriculture differently from a legal and policy standpoint is that for one, it will encourage exploitation of agricultural land such as land grabbing and using the land for different purposes other than the ones initially intended. It might limit the quality of food production due to weak policies enacted. It can also lead to low production and an increase in food prices due to a lack of appropriate controls.

 

Agriculture should be exempted from environmental, labor, and anti-trust laws. This is because farmers are exposed to greater market uncertainties and price volatility. Farmers normally work independently with little collective bargaining power to defend their interests against food processors and retailers. The aim of such exemptions is to counter imbalance in information and negotiating power, to protect fair competition in agriculture, and to mainly protect the farmer's interests since agriculture is a special sector of the economy requiring intensive intervention policies. Since agriculture involves land usage, exemptions of some environmental laws should be given to encourage and enhance farming and to prevent any limitations of farming activities.