U.S. Farm Policy and the Variability of Commodity Prices and Farm Revenues, February 2000

(2000) U.S. Farm Policy and the Variability of Commodity Prices and Farm Revenues, February 2000. Iowa State University

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Abstract

A dynamic, three-commodity rational-expectations storage model is used to compare the impact of the Federal Agricultural Improvement and Reform (FAIR) Act of 1996 with a freemarket policy and with the agricultural policies that preceded the FAIR Act. Results support the hypothesis that the changes made when FAIR was enacted did not lead to permanent significant increases in the volatility of farm prices or revenues. An important finding 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 support prices or to stabilize farm incomes.

Item Type: Departmental Report
Keywords: FAIR Act, farm prices, free-market policy, rational-expectations storage model, revenue
Subjects: Business and industry > Economic development
Agriculture and food production > Farmlands
ID Code: 2868
Deposited By: Margaret Barr
Deposited On: 15 Feb 2006
Last Modified: 15 Feb 2006
URI: http://publications.iowa.gov/id/eprint/2868

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