Reducing agricultural nonpoint pollution has been an environmental policy issue since the early 1980s. We discuss the evolution and results of federal and state policy, the contributions of applied economic research to improving the effectiveness and efficiency of water pollution control policies for agriculture, elements of policy reforms that are consistent with the Clean Water Act, and the outlook for needed policy innovation.

Economic and environmental challenges in the global economy raise significant issues that require public policy and private sector attention over the next decade. Price volatility, invasive species, sustainable biofuels production, and climate change all affect our agricultural and resource base and its future. Agricultural and resource economists must provide analyses of public policy and private sector strategies based on innovative research that integrates insights across disciplinary boundaries. Proactive communication of the results to decision makers can make a difference in how these important societal issues are addressed and help to shape the future.

This article challenges the traditional model of the economist as a humble technocrat who simply provides analysis given the preferences of policy decision-makers. Since decision-makers rarely reveal their preferences, it is important that the would-be policy research/analyst know the political economy and be willing to identify potential performance goals for society. Researchers who are willing to incur the transaction cost associated with becoming involved in useful policy research must learn to work within the imperfect policy process. Policy research that considers the importance of implementation and that acknowledges the institutions and the history will have the highest chance of being useful to policy-makers.

‘Relevance’, ‘accountability’ and ‘users’ are now prominent terms in the policies of public research funding agencies. In countries such as the UK, the funding of research in social science and other subjects has become increasingly dependent on the perception that research will contribute towards the achievement of certain national goals. Despite renewed discussions surrounding the utility of social analysis, these are rarely informed by debates in academic communities about the meaning of ‘relevance’ or associated debates about the status of knowledge. However divergent policy and academic discussions about relevance may appear, they intersect in concerns over the identity of researchers, the practices of research, and the claims made on behalf of research. This article draws on a case study in an attempt to show the difficulties of reconciling competing demands for relevance. Preliminary reflections are offered on a strategy for creating a productive tension between policy and academic discussions.