The Role of Productivity Growth and Farmers' Income Protection Policies in the Decline of Relative Farm Prices in the United States

Dragan Miljkovic, Hyun Jin (hyunjin@cau.ac.kr) and Rodney Paul

No 9368, Agribusiness & Applied Economics Report from North Dakota State University, Department of Agribusiness and Applied Economics

Abstract: The paper emphasizes three interrelated questions about the decline in relative farm to non-farm prices in the United States since 1973; 1) Is it unusual, 2) What caused it, and 3) Is it likely to continue? We find that based on historical and international evidence this phenomenon may be considered unusual. Separating farm price and income support in 1973 and growing relative productivity in agriculture has been the major contributor to changing the trend of the relative farm goods inflation. This trend is likely to continue based on predicted steady growth of relative agricultural productivity and continuation of direct payments and other forms of farm income support policies.

Keywords: Agricultural and Food Policy; Agricultural Finance; Productivity Analysis (search for similar items in EconPapers)
Pages: 23
Date: 2007
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Citations: View citations in EconPapers (1)

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Journal Article: The role of productivity growth and farmers' income protection policies in the decline of relative farm prices in the United States (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:nddaae:9368

DOI: 10.22004/ag.econ.9368

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