An Assessment of Marketing Loan Program Options

Michael. Hanthorn and Joseph W. Glauber

No 308037, Agricultural Economic Reports from United States Department of Agriculture, Economic Research Service

Abstract: The Secretary of Agriculture did not implement marketing loans for 1987 crops of wheat, feed grains, and soybeans. Marketing loans were not implemented for wheat and feed grains because other less costly policy tools are lowering domestic prices as much as marketing loans could. For soybeans, if world prices were significantly below U.S. prices, a marketing loan could lower domestic prices, but at a substantial cost. The demand response to marketing loans for these crops would be small in the short run. Implementation of marketing loans for rice and upland cotton has allowed the United States to regain the share of world trade for these commodities during the 1986/87 marketing year that it enjoyed in the early 1980's. But CCC outlays for rice and upland cotton associated with marketing loans are estimated to have exceeded $635 million.

Keywords: Agricultural and Food Policy; Crop Production/Industries; Demand and Price Analysis; Marketing (search for similar items in EconPapers)
Pages: 40
Date: 1987-12
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:uerser:308037

DOI: 10.22004/ag.econ.308037

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