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The Political Economic Myth and Reality of Agricultural Producer Price Support: The 'Agricultural Treadmill' Revisited

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  • Witzke, Harald von
  • Hausner, Ulrich

Abstract

The myth of agricultural price policy is that it can counteract the economic effect of the 'agricultural treadmill'. In this paper it is shown that this is not the case. The political economic reality of farm price programs is that a growth in agricultural supply leads to lower levels of price support, all other things bring eqtml. In US wheat and grain policy, the extent of endogenous policy adjustments has been in the same order of magnitude as price changes that would have occurred without price policy.

Suggested Citation

  • Witzke, Harald von & Hausner, Ulrich, 1997. "The Political Economic Myth and Reality of Agricultural Producer Price Support: The 'Agricultural Treadmill' Revisited," 1997 Occasional Paper Series No. 7 198055, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaaeo7:198055
    DOI: 10.22004/ag.econ.198055
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    1. Tyers,Rod & Anderson,Kym, 2011. "Disarray in World Food Markets," Cambridge Books, Cambridge University Press, number 9780521172318.
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    1. von Witzke, Harald, 2007. "Landwirtschaft in der okologischen Marktwirtschaft: Sicherung der Welternahrung vs. Klimaschutz und Bioenergie," Working Paper Series 10290, Humboldt University Berlin, Department of Agricultural Economics.

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