Simulated effects of alternative policy and economic environments on U.S. agriculture

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1974-03-01
Authors
Ray, Daryll
Heady, Earl
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Center for Agricultural and Rural Development
Abstract

Historically, government price and income farm programs have been aimed at specific commodity groups. Each commodity program has its own price supports, target prices, acreage allotments, marketing quotas, or other instrumental variables. Within the framework of congressional legislation, program administrators annually announce the levels of these strategic variables for each commodity. The collection of variable levels for all programs represents one point in a set of possible combinations. The level of each government policy parameter or variable not only affects a particular commodity but also related agricultural commodities, the entire agricultural sector, and the economy as a whole.

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