Today, farming claims fewer members in the U.S. work force, and its share of the gross national product has substantially decreased. Yet farming remains important to the economy because of its links to a variety of industries. Extensive use of financial inputs has made farmers more vulnerable to fluctuations in the general economy, rising costs, and interruptions in supplies. Although macroeconomic factors have become increasingly critical in shaping demand for farm products, agricultural policies are only weakly integrated with macroeconomic policy. Trade and financial links mean that domestic and foreign macroeconomic policies and world supply and demand conditions affect U.S. agricultural exports, which, in turn, heavily affect the farm sector. The 1985 Food Security Act focuses on shifting agriculture more toward market orientation so that the farm sector can produce for domestic and international markets at prices reflecting global supply and demand. The potential for continued volatility in the farm sector has significant implications for farm policy, pointing to the need for more flexible farm programs to deal with different markets in the U.S. and abroad. Other farm policy proposals that have been offered include decoupling, mandatory production controls, and targeting. (YLB)