The US food and agriculture system is among the most productive and dynamic in the world, built and strengthened by its ability to respond rapidly to market forces. This capacity has strengthened its use of new technologies, expanded economies of scale, and stimulated investment in research. But market signals are today being obscured by pressures from environmentalists, food safety advocates, populist agrarian groups, and others aiming to curb real or perceived abuses. The breadth of new and proposed agricultural regulations is unprecedented and promises to have a profound effect on the structure and competitiveness of the industry. And, a powerful new regulatory trend is emerging as industry responds directly to threats from activist groups, proactively instituting supplier regulations that go far beyond existing legislation. No segment is immune; all will be forced to find innovative ways to remain competitive and profitable in the face of ever-tightening constraints on their actions.