Less than 4% of the Japanese are obese, whereas 32% of Americans are obese. The Japanese both eat less and are more physically active than Americans. If we understand why, much can be learned about reducing obesity in the United States.

The Bush Administration has proposed major changes in federal funding mechanisms for state agricultural experiment station research with a reallocation from formula to grant funding. This article examines who wins and who loses from such changes based on differences in who sets the research agenda, the types of research discoveries that would be favored, distributional effects it would have across the states and regions, the payoff to society, and sustainability of future funding. A case is made for maintained and perhaps increasing federal formula funds due to their high rate of return and equitable distribution of research capacity among the states and increasing competitive grant funding to address selective high priority national or perhaps regional needs.