The Effect of Reagan’s Tax Policies on Farm Size Distribution in Washington State

Recent developments with the election of Donald Trump and his tax policies have brought forward concerns of where the agricultural sector is headed in the near future. This paper examines the impacts of Ronald Reagan, a president with a similar economic ideology to Trump, and his tax policies on farm size distribution in America, in particular, Washington State. Data from the USDA’s National Agricultural Statistics Service shows that the only factor which seems to have a significant negative correlation to average farm size in Washington is the quantity of wheat produced in the state. When examining the historical context and the policies passed by Reagan, it is concluded that there are many other factors which have a larger impact. It is actually the domestic and foreign policies which affect farm size distribution the most. Domestic policies like the shift toward conservation had a direct effect on farm size by incentivizing many farmers to get their land out of production. Foreign policy had the most significant effect on production quantity of wheat because when relations with big consumers like the Soviet Union deteriorated, so did the quantity produced. This paper highlights how the most important industry which provides everyone with food security, is most strongly affected by decisions made outside of the people operating businesses within the industry.