Reaping What We Sow: The Regulatory Noose Choking American Farms

The American agricultural sector is a cornerstone of our nation’s economy. However, excessive regulation threatens to stifle the innovation and productivity that have made U.S. agriculture a global leader. It’s time to reconsider our approach to agricultural policy and pursue a market-oriented system that allows farmers to pioneer and thrive.

The remarkable productivity gains in American agriculture over the past decades are a testament to the power of innovation. According to the United States Department of Agriculture (USDA), the nation’s agricultural per-capita production has increased by almost 300 percent from 1948 to 2017. This growth has been driven largely by the adoption of innovative business models and new technologies, rather than increases in traditional inputs like land or labor.

However, this impressive growth trajectory is under threat from an ever-expanding web of regulations. A Purdue University analysis of federal agricultural regulations imposed from 1997 to 2012 found substantial impacts on productivity growth. USDA regulations alone led to a 24.7 percent decrease in productivity growth, while Environmental Protection Agency (EPA) regulations caused a 36.8 percent decrease. These figures should serve as a wake-up call to policymakers about the consequences of overly burdensome regulations.

The regulatory burden doesn’t just come from Washington. State-level regulations also play a significant role in hampering agricultural innovation. In California, for instance, self-driving tractors are required to have an operator stationed in the vehicle, effectively negating the benefits of this labor-saving technology. Meanwhile, in Mississippi, drone operators seeking to apply pesticides or fertilizers must obtain an airplane pilot’s license due to outdated rules. These examples illustrate how regulations often fail to keep pace with technological advancements, creating unnecessary obstacles for farmers trying to improve their operations.

The impact of these regulations goes beyond just stifling innovation – they have real economic consequences. A 2018 study by the George Washington University Regulatory Studies Center and the USDA found that “growth in total regulatory restrictions has a negative relationship with growth in crop yield.” This means that as regulations increase, crop yields suffer, directly impacting farmers’ livelihoods and our nation’s food security.

To address these challenges, we need a fundamental shift in our approach to agricultural policy. Instead of top-down, one-size-fits-all regulations, we should embrace market-oriented solutions that give farmers the flexibility to innovate and adapt to changing conditions.

One promising approach is the concept of “regulatory sandboxes” for agriculture. This model, which has been successful in other sectors like financial technology, would allow farmers to request specific exemptions from regulations that don’t affect health or safety. 

Several states have already taken steps in this direction by enacting “Food Freedom” laws. These laws expand access to agricultural products by reducing licensing and permit requirements for small farmers. Such reforms demonstrate that it’s possible to reduce regulatory burdens while still ensuring food safety and quality.

At the federal level, the USDA has made some progress with its Sustainable, Ecological, Consistent, Uniform, Responsible, Efficient (SECURE) rule, announced in 2020. This rule aims to modernize biotechnology regulations, reducing barriers to innovation in plant breeding. While this is a step in the right direction, more comprehensive reform is needed across all aspects of agricultural regulation.

Critics argue that deregulation leads to environmental degradation or compromised food safety. However, many of the existing regulations are outdated or redundant, and therefore their removal wouldn’t lead to these negative outcomes. Moreover, farmers have a vested interest in preserving their land and producing safe, high-quality food. Market forces and consumer demand are more effective than government mandates in driving sustainable and safe farming practices. By reducing unnecessary regulatory burdens, we can unleash the full potential of American agriculture, leading to increased productivity, lower food prices, and a more resilient farm sector.

It’s time for policymakers at all levels of government to recognize the harm caused by excessive regulation and take bold action to reform our agricultural policy. By embracing market-oriented solutions and giving farmers the freedom to innovate, we can ensure that American agriculture remains a global leader for generations to come. The future of our farms, and our nation’s food security, depends on it.