Location and Marketing under Marketing Assistance Loan and Loan Deficiency Payment Programs

Alexander Saak ()

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

Abstract: Marketing assistance loan (MAL) and loan deficiency payment (LDP) programs differ in their treatment of basis. This paper analyzes marketing decisions under these programs when producers are differentiated by location with respect to the terminal market. The developed model may help explain the observed lack of an association between the county loan rate and the share of a county's production enrolled in MAL programs. Under certain conditions, multiple equilibria are shown to emerge. The effects of MAL and LDP programs on welfare and policy implications are discussed.

Keywords: commodity prices; grain storage; price support programs. (search for similar items in EconPapers)
Date: 2002-04
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.card.iastate.edu/products/publications/pdf/02wp297.pdf Full Text (application/pdf)
https://www.card.iastate.edu/products/publications/synopsis/?p=361 Online Synopsis (text/html)

Related works:
Working Paper: Location and Marketing under Marketing Assistance Loan and Loan Deficiency Payment Programs (2002)
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:02-wp297

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 ().