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The role of productivity growth and farmers' income protection policies in the decline of relative farm prices in the United States

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  • Miljkovic, Dragan
  • Jin, Hyun J.
  • Paul, Rodney

Abstract

The paper emphasizes three interrelated questions about the decline in relative farm to non-farm prices in the United States since 1973: (1) Is it unusual, (2) What caused it, and (3) Is it likely to continue? We find that based on historical and international evidence this phenomenon may be considered unusual. Separating farm price and income support in 1973 and growing relative productivity in agriculture have been the major contributors to changing the trend of the relative farm goods inflation. This trend is likely to continue based on predicted steady growth of relative agricultural productivity and continuation of direct payments and other forms of farm income support policies.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Policy Modeling.

Volume (Year): 30 (2008)
Issue (Month): 5 ()
Pages: 873-885

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Handle: RePEc:eee:jpolmo:v:30:y:2008:i:5:p:873-885

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Web page: http://www.elsevier.com/locate/inca/505735

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Cited by:
  1. Miljkovic, Dragan & Shaik, Saleem, 2010. "The Impact of Trade Openness on Technical Efficiency in U.S. Agriculture," 2010 Annual Meeting, February 6-9, 2010, Orlando, Florida 56334, Southern Agricultural Economics Association.
  2. Andaleeb Rahman, 2012. "Characterizing food prices in India," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2012-022, Indira Gandhi Institute of Development Research, Mumbai, India.
  3. El Benni, Nadja & Finger, Robert, 2013. "The effect of agricultural policy reforms on income inequality in Swiss agriculture - An analysis for valley, hill and mountain regions," Journal of Policy Modeling, Elsevier, vol. 35(4), pages 638-651.

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