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Technological change has driven economic progress in agriculture and will continue to play a crucial role in the 21st century. The latest wave of technological change in agriculture is based in molecular biology. Will horticulture participate? Genetically engineered crop varieties have been adopted on a wide scale in some agronomic crops, but horticultural crops face larger hurdles. High costs for research, development and regulatory approval combined with the small acreages planted and the diversity of varieties, will limit the potential for profitable applications of biotechnology to many fruits and vegetables, tree fruits and nuts, and nursery crops. In addition, there are market barriers. Like most important changes in agriculture, modern biotechnology has met with spirited political opposition from some quarters. Threats of political action may discourage food manufacturers and retailers from adopting biotech products that are wanted by some consumers and may be profitable for growers.

Two types of public choice models have been applied to model the political economy of farm programs: the self‐willed government (SWG) model and the clearinghouse government (CHG) model. In terms of theory, the two models are very similar but most analysts prefer the CHG model. In terms of empirical work, the CHG model has done a little more—but not much more—to further our understanding of the causes of farm programs. Reviewing the theoretical and applied literature indicates that one should extend and refine the models so as to allow explicitly for a larger number of interest groups (especially agribusiness and foreign interests), to allow multiple policy instruments to be applied jointly, and to explain the choice(s) of policy instruments jointly with the rate of protection.

Today's European wine policy is centered on a system of appellations, implemented as geographical indications (GIs), that entail significant technological regulations—restricting the varieties that may be grown, while imposing maximum yields per hectare and other rules regarding grape production and winemaking practice. This paper outlines the historical development of European wine policy under the CAP, and presents a more detailed analysis of the economic consequences of the rules and regulations under the appellation system. The introduction of these rules and regulations was probably beneficial initially, both for their didactive effect on wine producers and consumers and as a way of overcoming a significant "lemons" problem in the market. However, those same rules and regulations are much less valuable today, given (1) the potential for alternative sources of information to solve the lemons problem, and (2) evidence that the appellation system per se might not be effectively serving that purpose as well as it once did, while some of the regulations impose significant social costs. Yield restrictions, in particular, are economically inefficient as a way of enhancing and signaling quality (their ostensible purpose) and as a way of restricting total supply to support market prices and thus producer incomes (a significant motivation). The inherent weaknesses of the policy design are compounded by failures of governance. A less heavy-handed approach to policy would allow more scope for the market mechanism to match supply and demand for this signature product from European agriculture.

"This book uses an economic framework to examine the consequences of U.S. farm and food policies for obesity, its social costs, and the implications for government policy. Drawing on evidence from economics, public health, nutrition, and medicine, the authors evaluate past and potential future roles of policies such as farm subsidies, public agricultural R&D, food assistance programs, taxes on particular foods (such as sodas) or nutrients (such as fat), food labeling laws, and advertising controls. The findings are mostly negative--it is generally not economic to use farm and food policies as obesity policy--but some food policies that combine incentives and information have potential to make a worthwhile impact."