The policies that governments use are of particular importance in influencing the economy as a whole.
Macroeconomic policies can influence U.S. agriculture in direct or indirect ways.
Policies involving interest rates have a direct effect on the value of land in the agricultural sector. They also directly affect the profitability of production because agriculture is a very capital-intensive industry. Indirectly, macroeconomic policies can affect the relative demand for and competitiveness of U.S. exports. Fiscal and monetary policies spurring high growth rates in the U.S. economy tend to increase our demand for foreign goods relative to the foreign demand for U.S. products, causing a trade deficit. Macroeconomic policies also send signals to investors worldwide about the future performance of the U.S. economy.