Estimated Net Costs of P.L. 480 Food Aid with Three Alternative U. S. Farm Programs

Leo V. Mayer

American Journal of Agricultural Economics, 1972, vol. 54, issue 1, 41-50

Abstract: Exports under P.L. 480 programs have become an established part of total demand for U.S. form output. Prices charged for commodities have varied with changing supply and demand conditions, but more recently terms of trade are being shifted in favor of the U.S. These changed terms of trade come at the same time the U.S. government is incurring increased costs for land diversion programs. This article reports research which simultaneously analyzes the two government programs, land diversion and P.L. 480 demand expansion, and provides estimates of the net cost per unit for specific commodities with three alternative land retirement programs.

Date: 1972
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