U.S. Agricultural Policy and The 2007 Farm Bill Editors: Kaush Arha, Tim Josling, Daniel A. Sumner, WOODS INSTITUTE FOR THE ENVIRONMENT ENCINA MODULAR C, 429 ARGUELLO WAY, STANFORD, CA 94305-6030 and Barton H. Thompson U.S. Agricultural Policy and the 2007 Farm Bill editors: Kaush Arha, Tim Josling, Daniel A. Sumner, & Barton H. Thompson ii WOODS INSTITUTE FOR THE ENVIRONMENT | STANFORD UNIVERSITY TO MY GRANDFATHER—KESRI SINGH, A GENTLEMAN FARMER, WHO INSTILLED IN ME A LOVE OF FARMING AND NATURE. —KAUSH ARHA U.S. Agricultural Policy and the 2007 Farm Bill iii ACKNOWLEDGMENTS In 2006, the Stanford Law School and the Woods Institute for the Environment at Stanford University convened a National Forum to discuss U.S. Agricultural Policy and the 2007 Farm Bill. The School of Environmental Studies at Yale University and the American Farmland Trust joined Stanford as co-sponsors. The topic of the Forum was defined as “conserving ecological integrity and economic resilience of American Farmlands.” The Forum chose to focus on farm commodity payments and conservation policies. Three workshops were convened that brought together eminent scholars and practitioners in the field of U.S. and world agricultural policy. The purpose was to have a spirited debate on the pressing topics and provide reasoned background information to policy makers and interested members of the general public on the salient issues. This volume represents the papers that were written for the workshops and then later improved by the workshop discussions. The views expressed in this book represent the opinions of the authors alone and not of the sponsoring organizations or the Forum participants. The Forum would not have been successful without the considerable commitment and enthusiasm of its participants. The rich give and take in a cordial atmosphere at the Forum was made possible by the professional and constructive manner in which the volunteer presenters, commentators, and facilitators steered the discussion. The participants’ names are listed below, and we extend our sincere gratitude to all. The Forum greatly benefited from its partnership with the American Farmland Trust and the support of its President, Ralph Grossi. Financial support for the Forum was provided by the William and Flora Hewlett Foundation and the U.S. Department of Agriculture. The Altria Group, The Boone & Crockett Club, and the Wine Institute graciously hosted receptions in conjunction with the third workshop of the Forum. In addition to the authors who wrote the chapters in this book, we are indebted to the following individuals who played key roles through the Forum and were generous with their time and comments on the manuscript: Mark Rey, Tom Dorr, Joe Glauber, Neil Conklin, John Hardin, Ron Warfield, Al Montna, Greg Schilwachter, Rob Johnson, Edwin Young, A.G. Kawamura, Roger Claasen, and David Zilberman. The success of the Forum owed much to the dexterous logistical assistance of Trish Gertridge and her staff at Stanford Law School and William Kuckuck and his staff at American Farmland Trust. In particular, Ilan Gutherz of American Farmland Trust provided valuable service. The publication of this book would not have been possible without the able guidance, support and skills of Patty Rosewater and her staff at the Woods Institute for the Environment, Susan Wels, and Annabelle Ison. To all those who contributed to the Forum and the publication of this book, we offer heartfelt gratitude. Kaush Arha Tim Josling Daniel A. Sumner Barton H. Thompson iv WOODS INSTITUTE FOR THE ENVIRONMENT | STANFORD UNIVERSITY NATIONAL FORUM ON U.S. AGRICULTURAL POLICY AND THE 2007 FARM BILL: CONSERVING THE ECOLOGICAL INTEGRITY AND ECONOMIC RESILIENCE OF AMERICAN WORKING LANDS Participants in Forum Workshops Kym Anderson World Bank Kaush Arha Stanford University Roberto Azevado Ministerio das Relacoes Exteriores, Brasil David Baldock The Institute for European Environmental Policy John Beghin Iowa State University David Blandford Pennsylvania State University Mary Bohman USDA—Economic Research Service Jim Boyd Resources For the Future Mike Chrisman California Resources Agency Poul Christoffersen European Commission Neilson Conklin USDA—Economic Research Service Joseph Cooper White House Council of Economic Advisors Darren Coppock National Association of Wheat Growers Craig Cox Soil and Water Conservation Society Gretchen Daily Stanford University Flavio S. Damico Ministerio das Relacoes Exteriores, Brasil Otto Doering Purdue University Thomas Dorr USDA—Rural Development Mark Eigenraam Department of Primary Industries, Victoria Jeff Eisenberg National Cattlemen’s and Beef Producers Association Daniel Esty Yale University John Etchepare Wyoming Department of Agriculture Scott Faber Environmental Defense Franz Fischler Fischler Associates Cornelius Gallagher Bank of America Bruce Gardner University of Maryland Michael Gifford International Food and Agriculture Trade Policy Council Joseph Glauber USDA—Office of the Chief Economist Suzie Greenlaugh World Resources Institute Dan Griswold Cato Institute Ralph Grossi American Farmland Trust Jim Grueff Decision Leaders, LLC Michael Hammell European Commission Anastassios Haniotis European Commission Krysta Harden National Association of Conservation Districts John Hardin Hardin Farms Those listed participated in at least one of the three workshops. They participated as individuals, and their affiliation is given for means of identification only. U.S. Agricultural Policy and the 2007 Farm Bill Louise Jackson University of California, Davis Bart James The Ducks Unlimited Carol Jett USDA—Natural Resource Conservation Service Allan Johnson U.S. Dept. of Agriculture—Rural Development Robbin Johnson Cargill, Inc. Timothy Josling Stanford University A.G. Kawamura California Department of Food and Agriculture John Keeling National Potato Council David Kleijn Wageningen University, the Netherlands William Kuckuck American Farmland Trust Reece Langley USA Rice Federation Douglas Lawrence USDA—Natural Resources Conservation Service Wilfrid Legg Organization for Economic Cooperation & Development Larry Martin E&J Gallo Winery Gary Mast USDA—Natural Resources Conservation Service Stephanie Mercier Senate Agriculture Committee Alfred Montna Montna Farms Andrew Morton Senate Agriculture Committee Jennifer Mock International Association of Fish & Wildlife Agencies Thomas Nassif Western Growers Association Jay Noel California Institute for the Study of Specialty Crops Joe O’Mara O’Mara & Associates Dave Orden International Food Policy Research Institute Mechel Paggi CSU-Fresno, Center for Agri-Business Stefan Pagiola The World Bank James Salzman Duke University Jimmie Powell The Nature Conservancy Mark Rey USDA—Natural Resource Conservation Steve Riley Nebraska Game & Parks Commission Rich Rominger American Farmland Trust Greg Schildwachter White House Council on Environmental Quality Randall Schnepf Congressional Research Service Ann Sorensen American Farmland Trust Daniel Sumner University of California, Davis Alan Swinbank The University of Reading Del Tinsley Director Rural Development, Wyoming Linwood Tipton International Dairy Foods Association Barton H. Thompson Stanford Law School Robert Thompson University of Illinois, Urbana Champagne Jean-Marc Trarieux European Commission Michael Treacy Irish Farmers’ Association Robert Tse California Department of Food and Agriculture Ann M. Tutwiler The William and Flora Hewlett Foundation Ron Warfield University of Illinois, Urbana Champagne Marca Weinberg USDA—Economic Research Service William White Missouri Department of Conservation Sam Willett National Corn Growers Association Bob Young American Farm Bureau Federation Joe Zanger Casa de Fruta vi WOODS INSTITUTE FOR THE ENVIRONMENT | STANFORD UNIVERSITY Contributors Kaush Arha practices law at Latham & Watkins in Washington, D.C. He served as the director of the National Forum on U.S. Agricultural Policy and the 2007 Farm Bill: Conserving Ecological Integrity and Preserving Economic Resilience of American Farmlands. From 997 to 2002 he administered the Wyoming Private Lands/ Public Wildlife Conservation Program, advancing wildlife conservation on private lands. Later he developed a Wyoming state strategy for conserving threatened and endangered species. In 2005 he directed a National Forum on the Endangered Species Act and Federalism: Effective Species Conservation through Greater State Commitment. He received his M.Sc. in Agricultural and Resource Economics and his Ph.D. in Wildland Resource Science from the University of California at Berkeley and his J.D. from Stanford University. David Blandford is a professor and former head of the Department of Agricultural Economics and Rural Sociology at the Pennsylvania State University. Born and educated in the United Kingdom, he was formerly a division director at the Organization for Economic Cooperation and Development in Paris and a professor at Cornell University. He has twice served as chair of the International Agricultural Trade Research Consortium—an organization composed of researchers from government, academia, and industry. He teaches courses in agribusiness at Penn State and conducts research into food, agricultural and environmental policy, and international trade. Craig Cox is executive director of the Soil and Water Conservation Society—a professional organization dedicated to promoting the art and science of natural resource conservation. He has devoted his working life to natural resource conservation since 977,