The entirety of U.S. agriculture is one of the most, if not the most, efficient, food production systems under private ownership in the world. Furthermore, U.S. farmers and ranchers generate a safe, quality food supply that provides consumers with numerous affordable choices.
However, I have become increasingly concerned that as U.S. agriculture moves rapidly toward a system increasingly driven by government regulation, that this regulatory activity, if carried far enough, will jump to even greater government involvement with increasing evidence of that already. While recent regulations largely involve carbon capture, climate change, and sustainability, there are other laws stacking up as well such as Prop 12 in California which went into effect in 2022 and created a space requirement for raising livestock and poultry. Thursday (May 11), the Supreme Court of the United States announced their decision to uphold this law. Prop. 12 and the Court’s decision to uphold it will have a significant and detrimental impact on U.S. pork production.
Beyond the borders of the United States, there is government involvement in agriculture that is even more concerning than Prop 12 here in the U.S. It was recently reported the Dutch government of the Netherlands is offering to buy Dutch farmland in order to reduce the production of nitrogen near Natura 2000 nature preserves. These preserves across 27 countries in the European Union were created to protect “valuable and protected species and habitats.” Dutch farmers, if they sell now, will receive a 20% premium. Sound like a pretty good deal? Well, here is the second part of that farmland buyout – once the farmers sell, they cannot purchase another farm anywhere in the EU! By the way, the Netherlands is the 5th largest world exporter of food. The United States ranks Number 2 in world food exports.
In 1862, when President Lincoln created the USDA or “People’s Department” as he called it, farmers represented over 50% of the U.S. population. Today, only 2% of the population are farmers. While some people might say that the increased involvement of government in U.S. food production is simply continuing to follow Lincoln’s vision, I would be wary. Government in this country has only expanded its regulatory role in every industry including agriculture. One does not have to read or listen to John Kerry’s comments on climate change, which he is now directing toward farmers, for very long to ask what I believe is the next relevant question. Will the U.S. follow the Netherlands lead with government ownership of cropland agriculture?
