In this paper, we explore some options for an active adjustment policy for U.S.
agriculture. In the first section, we provide a brief review of existing policies, with particular
emphasis on elements oriented towards facilitating adjustment. To bring the issues into sharper
focus, we then discuss the likely initial impact of a policy change involving a reduction in
support, note the associated market adjustments, and identify particular target groups for
adjustment policy. Finally, we offer suggestions for the future direction of adjustment policy for
agriculture, dealing specifically with measures to address reductions in farm asset values, human
capital issues, and persistent poverty.