Agricultural Policy Reform and Policy Convergence: An Actor-Centered Institutionalist Approach

This article examines the entry into the agricultural policy arena of a new market liberal vision. Battles over market liberalism are some of the defining struggles of the present age. The article develops a stylized framework designed to help understand some of these political struggles and some of the underlying dynamics of the complex policy debates that have occurred. It begins with a brief review of the changed economic context for farming that gradually took place in the 1990s and then provides an overview of how market liberal values and norms might be applied to agriculture. Constructing a stylized set of negotiations in a game-theoretic form that might take place in a debate over the merits of a market liberal approach, it shows two different paths for agricultural policy reform. The analysis suggests that policy change is likely to move more in a market-liberal direction under a center-left government than under a conservative one. This model isthen tested by looking at policy change in two sectors (cereal grains, dairy) in three countries (Australia, Canada, and the United States of America). The analysis suggests that the models are more helpful and policy convergence is more pronounced when sectors are open to international competition. In contrast, the models work less well and convergence is lower in highly protected sectors.