U.S. Farm Policy and the Variability of Commodity Prices and Farm Revenues

Sergio Lence and Dermot Hayes

Center for Agricultural and Rural Development (CARD) Publications from Center for Agricultural and Rural Development (CARD) at Iowa State University

Abstract: Historically, the U.S. government has had a substantial involvement in the agricultural sector. Lence and Hayes use a dynamic, three-commodity, rational-expectations storage model 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. They show that the transitional payments created to replace the pre-FAIR deficiency payments are much lower than the payments they replaced, which does reduce farm revenues. An important finding of the study 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 distort prices or to stabilize farm incomes.

Date: 2000-03
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://www.card.iastate.edu/products/publications/pdf/00wp239.pdf Full Text (application/pdf)
https://www.card.iastate.edu/products/publications/synopsis/?p=284 Online Synopsis (text/html)

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)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ias:cpaper:00-wp239

Access Statistics for this paper

More papers in Center for Agricultural and Rural Development (CARD) Publications from Center for Agricultural and Rural Development (CARD) at Iowa State University Contact information at EDIRC.
Bibliographic data for series maintained by ().