American and Chinese Agricultural Policy since 1949: An Overview

Abstract

The agricultural policies of the United States and the People's Republic of China have differed substantially given the governmental structures of each nation. During the 1930s, the U.S. federal government began a host of regulatory agricultural programs designed to improve the farm economy and lift agriculture from the Great Depression. Although many farmers participated in crop reduction and price support programs, they had little choice. The federal government did not force farmers to participate in its price support, crop reduction, and loan programs, but they felt compelled to do so in order to gain needed economic assistance, that is, money. Since the New Deal program of the 1930s, agricultural policy in the United States has been based on supply side economics, and agricultural organizations have been effective lobbyists in Congress to support their own interests. U.S. agricultural policy, however, has encouraged farmers to leave the land for employment elsewhere as well as provided price supports and other income programs primarily for large-scale farmers and agricultural corporations rather than small-scale family farmers. The intent of this policy has been to ensure for those farmers who remain on the land an income and standard of living comparable to urbanites. U.S. agricultural policy has undergone little substantial change since the early 1930s.In contrast, the agricultural policy of the People's Republic of China has undergone increasing change since World War II, but it has been based on government purchases of agricultural commodities at fixed prices with requirements for some farmers to raise grain. Both of these features are designed to keep food prices low for the industrial and urban populations. Since the late 1970s, Chinese agricultural policy, however, has enabled rapid rural economic growth, provided improved market incentives, and led to the rapid development of food markets. By the twenty-first century market-oriented reform had become the major factor for agricultural growth, but the Chinese government also continued to support an agricultural policy designed to ensure an adequate supply of grain at low cost, thereby privileging the industrial economy at the expense of agriculture. This agricultural policy also kept an increasing number of peasant farmers on the land with incomes and a standard of living considerably below urbanites.Although American and Chinese agricultural policies have sought food security and stability during the twentieth century, and while both nations provide incentives to improve agricultural income, both nations have pursued substantially different policies to achieve those goals. The agricultural policy of each country has its advocates and critics. This paper provides a comparative, historical overview of the agricultural policies of both nations.