ABSTRACT
This chapter analyses the impact of macroeconomic policies on agricultural structure. Macroeconomic policies—including monetary policy to control the money supply and inflation, and fiscal policy to control aggregate demand—have influenced much more than farm prices and incomes. Such policies also have influenced the structure of agriculture as evident in the size, type, number, tenure, and legal organization of arms. The reigning blend of macroeconomic policies can best be described as "Reaganomics." The overall impact of US macroeconomic policy on foreign economic growth is difficult to determine but may be negative. The business cycle cannot be eliminated but favorable macroeconomic policies can bring a more stable national and international economic environment. At issue here are favorable versus less favorable macroeconomic policies for farm structure. Favorable macroeconomic policy would increase technological change, national income growth, and export growth under more stable prices and general economic conditions. The macroeconomic environment is expected to lead to declining numbers and shares of mid-size family farms.
