GRADUATED TARGET PRICES BY SIZE OF FARM OPERATION

John R. Groenewegen and James Johnson

No 276690, Staff Reports from United States Department of Agriculture, Economic Research Service

Abstract: A characteristic common to all agricultural commodity programs since their inception in the 1920's has been the provision of benefits based on volume of production. It has long been alleged that such programs provide relatively greater assistance to large producers. The increasing concentration of production among a small number of large producers has renewed this concern over the structure of commodity programs. This paper examines a fundamental change in the programs -- benefits inversely provided to volume of production -- through variable target schemes and payment limitations. The structure of such a program is discussed, with particular emphasis on the important issues that emerge with this target price scheme.

Keywords: Agricultural Finance; Demand and Price Analysis (search for similar items in EconPapers)
Pages: 44
Date: 1980-12
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Persistent link: https://EconPapers.repec.org/RePEc:ags:uerssr:276690

DOI: 10.22004/ag.econ.276690

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