Expressing values in agricultural markets: An economic policy perspective

Many mechanisms now exist for consumers to express progressive values in purchasing decisions. Although demand for such goods has grown, these goods remain the purview of small niche markets. Focusing on the market for agricultural goods (and the choice between the paradigms of industrialized versus sustainable agriculture), this paper discusses three major reasons (market failures, entry barriers, and biased policies) why it is difficult for consumers to express their values for a more sustainable system in this way, and why policy change is needed to create a fairer playing field. The current policy, voluntary labeling, is inadequate. A new set of policies, including taxes and subsidies to correct market failures, is needed to create opportunities for consumers to support values such as health, community, and stewardship. [PUBLICATION ABSTRACT]