U.S. Farm Policy And The Variability Of Commodity Prices And Farm Revenues
AbstractA 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 free-market policy, and with the agricultural policies that preceded the FAIR Act. Results support the hypothesis that the changes enacted by FAIR 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.
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Bibliographic InfoPaper provided by NCR-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management in its series 2000 Conference, April 17-18 2000, Chicago, Illinois with number 18937.
Date of creation: 2000
Date of revision:
Contact details of provider:
Web page: http://www.agebb.missouri.edu/ncrext/ncr134/
FAIR Act; price volatility; storage; Agricultural and Food Policy;
Other versions of this item:
- Sergio H. Lence & Dermot J. Hayes, 2002. "U.S. Farm Policy and the Volatility of Commodity Prices and Farm Revenues," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(2), pages 335-351.
- Lence, Sergio H. & Hayes, Dermot J., 2002. "U.S. Farm Policy and the Volatility of Commodity Prices and Farm Revenue," Staff General Research Papers 1779, Iowa State University, Department of Economics.
- Sergio H. Lence & Dermot J. Hayes, 2000. "U.S. Farm Policy and the Variability of Commodity Prices and Farm Revenues," Center for Agricultural and Rural Development (CARD) Publications 00-wp239, Center for Agricultural and Rural Development (CARD) at Iowa State University.
- Sergio H. Lence & Dermot J. Hayes, 2000. "U.S. Farm Policy and the Variability of Commodity Prices and Farm Revenues," Food and Agricultural Policy Research Institute (FAPRI) Publications 00-wp239, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
- Lence, Sergio H. & Hayes, Dermot J., 2000. "U.S. Farm Policy and the Variability of Commodity Prices and Farm Revenues," Staff General Research Papers 1968, Iowa State University, Department of Economics.
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