INTRODUCTION

The business of producing food and fiber is undergoing unprecedented change, driven by economic, environmental, consumer, and technological forces beyond the control of individual farmers and ranchers. Federal and state policy makers need not only to be aware of these forces, but to understand their implications in order to make prudent policy decisions. Successful agricultural policy in the 21st century will help position American agriculture to profit from the opportunities this change will bring about. Though, with formidable new competitors like Brazil and Argentina having emerged in the global market, never before have the stakes been so high for American agriculture. We believe that to ensure the future viability of our nation's production agriculture industry, state and federal policy makers must work together. That is the spirit of this document. Indeed, NASDA's Farm Policy Initiative offers certain priorities for federal policy; moreover, it proposes important new roles for states, especially in the area of program and service delivery.

Guiding Principles – NASDA's process has been guided by six simple principles. These principles guide a comprehensive, coordinated national agricultural policy. We urge federal policy makers to adopt similar guidelines.

1. Profitability and Viability: A financially healthy and profitable agricultural sector is essential to the production of a safe, and affordable food supply. Moreover, economically viable farming and ranching enterprises will enable producers to increase their efforts to maintain a healthy environment, protect our natural resources, and build stronger rural communities.

2. Level Playing Field: A financially healthy and competitive agricultural economy can only result from a fair marketplace – domestic and global – where efficient, productive farmers and ranchers have economic marketing and bidding power commensurate to their assets and production capabilities.

3. Non-Trade Distorting: American producers are among the most efficient in the world. Open international – and domestic - markets are a benefit to U.S. agriculture. Thus, NASDA's recommended polices are intended to be market-based and non-trade distorting.

4. Flexibility in Regulation: One size does not fit all. Government regulations should be flexible, and to the maximum extent possible, based on voluntary participation through incentive-based approaches. While regulations should be appropriately based on national goals, they should also be controlled and implemented at the state level.

5. Sound Science: As stewards, agricultural producers have always looked to science for the best information possible to make decisions. Sound, peer-reviewed science derived from reliable data and information, and balanced, reasonable methodologies for assessing risk must also then be the standard for government regulations and international trading rules.

6. Maximum Delivery Through States: New and expanded programs should emphasize the role of states in terms of delivery. Particular emphasis should be placed on partnerships and pilot projects.