Hostname: page-component-cd9895bd7-jn8rn Total loading time: 0 Render date: 2024-12-25T00:59:50.388Z Has data issue: false hasContentIssue false
  • English
  • Français

A Variable Price Support Farm Program: A Transition Tool to a Free Market

Published online by Cambridge University Press:  09 September 2016

Wen-Yuan Huang ,
Bengt Hyberg  and
Eduardo Segarra
Wen-Yuan Huang
Affiliation:
Economic Research Service, USDA
Bengt Hyberg
Affiliation:
Economic Research Service, USDA
Eduardo Segarra
Affiliation:
Department of Agricultural Economics, Texas Tech University
Get access Rights & Permissions [Opens in a new window]

Abstract

This paper analyzes a variable price support program (VPS) as an alternative to the current farm income support program. The VPS program can control U.S. agricultural production while protecting income of small farmers. The VPS is designed to alter farm level production decisions by reducing commodity support prices for each additional unit of production produced. This will serve to discourage excess aggregate production. The VPS program can be a mechanism to stabilize income of efficient small farms during the transition from the current farm programs to a free market environment. An illustrative study is used to target government program benefits to various farm-size groups.

Keywords

variable price supportproduction controlfarm program benefitfarm size
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 22 , Issue 1 , July 1990 , pp. 133 - 144
Copyright
Copyright © Southern Agricultural Economics Association 1990

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Billings, R.B. and Agthe, D.E.. “Price Elasticities for Water: A Case of Increasing Block Rates.” Land Econ., 56(1980):73–84.CrossRefGoogle Scholar
Blandford, D.(ed.). Bringing Agriculture into the GATT: Assessing the Benefits of Trade Liberalization. International Agriculture Trade Research Consortium Summary Report. Annapolis, MD, 1988.Google Scholar
Brandt, J.A. and Bessler, D.A.. “Composite Forecasting: An Application with U.S. Hog Prices.” Am. J. Agr. Econ., 63(1981): 135–140.CrossRefGoogle Scholar
Chantfort, E.V. “Who Gets Those Farm Program Payments?” Farmline VIII (Dec.-Jan. 1987). Economic Research Service. U.S. Department of Agriculture, Washington, DC.Google Scholar
FAPRI. Compromising Analysis of Selected Policy Options for U.S. Agriculture. FAPRI staff report #1-87. CNFAD and CARD, University of Missouri-Columbia, February, 1986.Google Scholar
Green, R. and Price, M.. “Estimates of Short-Run Price Elasticities for Major U.S. Field Crop and Livestock Commodities Using FAPSIM.” Draft ERS Staff Report, 1989.Google Scholar
Heady, E.O. Mayer, L.V., and Madsen, H.C.. Future Farm Programs: Comparative Costs and Consequences. Ames, IA: The Iowa State University Press, 1972.Google Scholar
Helmberger, P. and Akinyosoye, V.. “Competitive Pricing and Storage under Uncertainty with an Application to the U.S. Soybean Market.” Am. J. Agr. Econ., 66 (1984): 119–130.CrossRefGoogle Scholar
Huang, W. Dicks, M.R., Hyberg, B.T., Webb, S., and Ogg, C.W.. “A National Linear Programming Model for Analysis of Soil Erosion.” Technical Bulletin Number 1742, Economic Research Service, USDA, Washington, DC, 1987.Google Scholar
Just, R. and Rausser, G.C.. “Commodity Price Forecasting with Large-Scale Econometric Models and Futures Market.” Am. J. Agr. Econ., 63 (1981): 197–208.CrossRefGoogle Scholar
Kendrick, D. and Meeraus, A.. “GAMS: An Introduction (Draft).” Development Research Department, World Bank, Washington, DC, 1985.Google Scholar
Knutson, D.R. Smith, E.G., Richardson, J.W., Pension, J.B., Hughes, D.W., Paggi, M.S., Yonkers, R.D., and Chen, D.T.. “Policy Alternatives for Modifying the 1985 Farm Bill.” Agricultural andFood Policy Center, Texas A & M, College Station, Texas, January, 1987.Google Scholar
Lederer, T.H. and Pollack, S.L.. “1987 Budget Acts: Description of Changes in Agricultural Policies and Programs.” Staff Report #AGES880114, Economic Research Service, USDA, Washington, DC, February 1988.Google Scholar
Lee, D. and Helmberger, P.. “Estimating Supply Response in the Presence of Farm Programs.” Am. J. Agr. Econ., 67 (1985): 193–203.CrossRefGoogle Scholar
Lowry, M. Glauber, J., Miranda, M., and Helmberger, P.. “Pricing and Storage of Field Crops: A Quarterly Model Applied to Soybeans.” Am. J. Agr. Econ., 69 (1987):740–749.CrossRefGoogle Scholar
Miller, T.A. and Rodewald, G.E.. Economics of Size in U.S. Field Crop Farming. AER 472. ERS, U.S. Department of Agriculture, Washington, DC, July 1981.Google Scholar
Runge, F. “The Assault on Agricultural Protectionism.” Foreign Affairs, 67 (1988): 133–150.CrossRefGoogle Scholar
Smith, M.G. “Can Farm Policy Help Small Farms?” Rural Development Perspective, ERS, U.S. Department of Agriculture, Washington, DC, October 1986.Google Scholar
Tyndall, D.G. “The Relative Merits of Average Cost Pricing, Marginal Cost Pricing and Price Discrimination.” Quart. J. Econ., 66 (1951):342–372.CrossRefGoogle Scholar
U.S. Bureau of Census. Statistical Abstract of the United States. 108th Edition, Bureau of the Census, U.S. Department of Commerce, Washington, DC, 1987.Google Scholar
U.S. Congress. Clean Water Act of 1987. Public Law 100-4. 100th Congress. Washington, DC, February 1987.Google Scholar
U.S Department of Agriculture. Soil, Water, and Related Resources in the United States: Status, Condition, and Analysis of Trends. Draft Report, U.S. Department of Agriculture. Washington, DC, September 1986.Google Scholar
U.S. Department of Agriculture. Government Intervention in Agriculture: Measurement, Evaluation, and Implications for Trade Negotiations. FAER 229, ERS, U.S. Department of Agriculture. Washington, DC, April 1987.Google Scholar
U.S. Department of Commerce. 1982 Census of Agriculture. Bureau of the Census, Washington, DC, 1984.Google Scholar
Young, C.E. Hyberg, B., Price, J.M., Huang, W., Lee, C., Sharpies, J., and Dvoskin, D.. Economic Effects of Mandatory Production Controls. AER 595, ERS, U.S. Department of Agriculture. Washington, DC, April 1989.Google Scholar