Uncertain Economic Environments and Conditional Policies

Since the introduction of commodity-specific policies in the United States, a number of agricultural policy crises or disequilibria have arisen. Agricultural policy disequilibria emerge when significant changes occur in the agricultural economy which the government is attempting to influence. These policies are generally structured on the basis of perceived conditions at the time of policy formulation. If and when these perceived conditions prove false, a policy disequilibrium arises; and pressure mounts for changes in policy instruments or even changes in the mix of policy instruments (Rausser, 1982).