In: Economics
Policies and regulations that directly or indirectly affect the
supply or
prices of food products, their safety and nutritional composition,
or
the information consumers receive about food all influence the
food
choices consumers make and, ultimately, the nutritional quality
of
their diets. The effect of policies and regulations on ultimate
dietary
choices depends on how the policy affects the cost of
producing
commodities, how those costs relate to final retail prices,
how
responsive consumers are to price changes, and how the policy
directly influences the consumers preference for the product.
Introduced with the Agricultural Adjustment Act of 1938, partly
in
response to the Great Depression, price and income support
programs
have been modified several times. Programs have combined
several
forms of assistance, including deficiency payments to cover the
gap
between target prices and market prices, (nonrecourse) loans to
farmers
that could be defaulted if prices fell below a specified level,
government purchases of surplus production to support prices,
short- and
long-term programs paying farmers to idle certain land from
production at a targeted level and limiting acreage planted to
certain crops
(the Acreage Reduction Programs and the Conservation Reserve
Program), export subsidies, and import restrictions. Many of
these
provisions were eliminated or suspended with the 1996 Farm Bill.
Just as these programs have had minor effects on consumer
choices,
the 1996 changes are believed to have had very small impacts
on
dietary choices because retail prices for food are only marginally
different (Young and Westcott, 1996). While retrospective studies
are
not yet available, prices were projected to be about 1 percent
lower
on average for dairy products and slightly lower for peanuts.
Prices
were projected to be slightly higher for rice due to the
elimination of
deficiency payments, which created an incentive to
overproduce
without corresponding supply control. Prices of foods based
on
grainsincluding meats, as well as cereals and bakery
goodswere
projected to be unchanged. Overall livestock feed costs were
projected to be similar to those under previous legislation,
although the mix
among feed grains and forage may be different. While wheat
prices
were projected to drop, ingredients are a fraction of cereals and
bakery goods retail cost. Availability of fruits and vegetables is
not
affected by these changes because payments are reduced for
fruits
and vegetables planted in excess of their historical plantings on
farms
with a production flexibility contract. The food and physical
activity choices made every day affect short- and long-being
physically active may reduce the risk for heart disease, high blood
pressure, term health and are directly related to weight outcomes.
Eating right and diabetes, osteoporosis, certain cancers, and being
overweight or obese (HHS and USDA, 2005). These diseases and
conditions impact the individual and his or her quality of life and
are associated with increasing health care costs that place a
burden on the government and businesses. Childhood provides the
opportunity to establish a solid foundation that can lead to
healthy lifelong eating patterns (IOM, 2005). Prevention of
childhood obesity is essential to the promotion of a healthier and
more productive society (IOM, 2005). In addition, many diet-related
chronic diseases have their origins during childhood and
adolescence.
Major changes in the nation’s food system and food and eating environments have occurred in recent decades, driven by technological advances; U.S. food and agricultural policies; population growth; and economic, social, and lifestyle changes (Story et al., 2008). Food is now readily available and accessible in many settings throughout the day. The current U.S. food supply contains a large amount of energy-dense foods, many of which consist of refined grains and foods high in fats and/or sugars and low in nutrients. Many of these foods are often available in increasingly large portion sizes at relatively low prices (Story et al., 2008). Americans are also eating out more often and consuming more calories away from home than ever before (Keystone Center, 2006). Moreover, families are eating fewer meals together (Neumark-Sztainer et al., 2003). In addition, the school food environment is radically different than it was a few decades ago, with many schools now offering and promoting high-calorie, low-nutrition foods throughout the school day (Fox et al., 2009). Food marketing aimed at children using multiple channels, such as digital media, has drastically increased as well (IOM, 2006). Finally, an exodus of grocery stores and an influx of fast-food restaurants in lower-income urban areas have contributed to income and racial/ethnic disparities in access to healthier foods (IOM, 2005).The livestock sector globally is highly dynamic. In developing countries, it is evolving in response to rapidly increasing demand for livestock products. In developed countries, demand for livestock products is stagnating, while many production systems are increasing their efficiency and environmental sustainability. Historical changes in the demand for livestock products have been largely driven by human population growth, income growth and urbanization and the production response in different livestock systems has been associated with science and technology as well as increases in animal numbers. In the future, production will increasingly be affected by competition for natural resources, particularly land and water, competition between food and feed and by the need to operate in a carbon-constrained economy. Developments in breeding, nutrition and animal health will continue to contribute to increasing potential production and further efficiency and genetic gains. Livestock production is likely to be increasingly affected by carbon constraints and environmental and animal welfare legislation. Demand for livestock products in the future could be heavily moderated by socio-economic factors such as human health concerns and changing socio-cultural values. There is considerable uncertainty as to how these factors will play out in different regions of the world in the coming decades.