What is government policy? Policy consist of the programs, laws, and institutions that government put in place to assist or to regulate people. And policy effects are delivered by policy instruments or policy mechanisms. So I'm gonna talk about a range of different types of policy mechanisms. So, here are some of the things that governments do to try and implement policy or ways of implementing government policy. Some policies make people do something or not do something backed by penalties for non-compliance, so regulatory sort of approach. Some policies try to teach people about a particular issue through education or training or raising awareness. Some policies aim to improve knowledge in technology, mainly through research and development. And some policies aim to build social trust and networks, which social scientists refer to as social capital. Then there are policies that provide payments – subsidies, incentive payments, welfare payments; policies that increase prices, through marketing schemes, crop insurance, domestic monopolies; and finally, policies that provide infrastructure and institutions – roads, railways, the rule of law. Now, agricultural policy has a range of different objectives. Governments have different ideas, different intentions when they set about putting a policy in place. And obviously, different types of policies, even in the same country, have different objectives, but some of the objectives that we see are to assist farmers, to improve their welfare, to grow the rural economy generally, not just increase the wealth of farmers, to provide food security for farmers, or to protect and enhance the environment. So let's talk about a few of those. To assist farmers and to grow the rural economy and to promote food security, governments use these types of mechanisms typically. They will encourage adoption of efficient new farming practices, using extension or incentive payments. They'll make payments to farmers sometimes, subsidies, incentive payments, welfare payments. They'll increase prices through monopoly systems, marketing schemes, crop insurance. They'll try to reduce risks, such as your crop insurance; they'll try to provide infrastructure – railways, dams, and so on. And they'll try to improve the knowledge and technologies that are valuable to agriculture through research and development. So all of those are about those three types of objectives in assisting farmers, growing the rural economy, and providing food security. Then, for those projects that aim to promote or enhance the environment, there's some overlap but some differences. There's more of a tendency to regulate harmful practices through such as application of harmful chemicals, clearing native vegetation. There are some schemes that pay farmers to adopt environmentally-friendly farming practices. There's fairly wide use of extension to promote these practices, extension meaning education, training, awareness raising. There's efforts to improve the knowledge of environmental impacts and technology to manage it, again through R&D, but obviously a different type of R&D than the one we mentioned a minute ago. And efforts to improve and build social trust and networks, in other words, to build social capital so that farmers can help each other to address environmental issues in their local regions. So in summary, policy includes programs, laws, and institutions of government. Quite a variety of different policy mechanisms are available, and they're used in a variety of ways to address the objectives of agricultural policy which can include assisting farmers, promoting the economy, promoting food security, and promoting or enhancing the environment.