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Innovation, Agricultural Productivity and Sustainability in the United States

image of Innovation, Agricultural Productivity and Sustainability in the United States

The US food and agriculture sector is innovative, competitive and export-oriented. Changes in national and global demand offer further opportunities for US agri-food products, although climate change and other resource constraints could create additional challenges, in particular in some regions. Maintaining high productivity growth, while improving the sustainable use of resources will require further innovation. In a policy environment generally favourable to investment  and innovation, the strong US agricultural innovation system is expected to continue to create innovations that will be widely adopted, to the extent that these can be widely accepted.

 

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Investment in the US food and agriculture system

This chapter reviews general incentives for investment decisions by US farms and agribusinesses. Those decisions affect the development and diffusion of innovations, the pace of productivity growth, and the sustainability of food production. They are in turn affected by a range of government regulatory policies, which can encourage or deter investments. While some US regulations are statespecific, most regulatory policies covered in this chapter are federal, and apply across all states. Some are general, covering all firms in the economy, while important elements of others are specific to agriculture. The chapter starts with the overall regulatory environment as it focuses on the behaviour of firms and farms, and surveys broad-based policy regarding taxes, finance, and international trade and investment.

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