U.S. FARM POLICY AND THE VARIABILITY OF COMMODITY PRICES AND FARM REVENUES

Sergio Lence and Dermot Hayes

No 18937, 2000 Conference, April 17-18 2000, Chicago, Illinois from NCR-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management

Abstract: A dynamic three-commodity rational-expectations storage model is used to compare the impact of the Federal Agricultural Improvement and Reform (FAIR) Act of 1996 with a free-market policy, and with the agricultural policies that preceded the FAIR Act. Results support the hypothesis that the changes enacted by FAIR did not lead to permanent significant increases in the volatility of farm prices or revenues. An important finding is that the main economic impacts of the pre-FAIR scenario, relative to the free-market regime, were to transfer income to farmers and to substitute government storage for private storage in a way that did little to support prices or to stabilize farm incomes.

Keywords: Agricultural; and; Food; Policy (search for similar items in EconPapers)
Pages: 24
Date: 2000
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Citations: View citations in EconPapers (5)

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Related works:
Journal Article: U.S. Farm Policy and the Volatility of Commodity Prices and Farm Revenues (2002)
Working Paper: U.S. Farm Policy and the Volatility of Commodity Prices and Farm Revenue (2002)
Working Paper: U.S. Farm Policy and the Variability of Commodity Prices and Farm Revenues (2000)
Working Paper: U.S. Farm Policy and the Variability of Commodity Prices and Farm Revenues (2000)
Working Paper: U.S. Farm Policy and the Variability of Commodity Prices and Farm Revenues (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ncrtci:18937

DOI: 10.22004/ag.econ.18937

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