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P. C. Abbott, Wallace Tyner (), M. J. Roth and G. T. Rafsnider

Journal of Agricultural Economics, 1991, vol. 42, issue 1, 23-32

Abstract: A representative farm policy impact model was developed using linear programming and primary survey data. The model was used to estimate farm‐level effects of proposed national government policies aimed at increasing food security through greater bread wheat production. The four policy options analysed included the introduction of a bread wheat variety resistant to an insect pest, an increase in the official bread wheat support price, potentially unlimited availability of nitrogen fertiliser, and rationing of nitrogen fertiliser at 500 kg per farm. The various policies increased farm income between 2.45 and 18 percent, as farmers made trade‐offs between the production of bread wheat and the more profitable durum wheat. Adjustments were made by farmers in the model to meet government‐targeted levels of bread wheat production in order to support national food self‐sufficiency at minimum cost. Simultaneously, the resources freed were used to produce more durum wheat. The results suggest a need to analyse interregional and international comparative advantages in wheat production prior to implementing proposed policies aimed at increasing bread wheat output.

Date: 1991
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Handle: RePEc:bla:jageco:v:42:y:1991:i:1:p:23-32