The Role of Productivity Growth and Farmers' Income Protection Policies in the Decline of Relative Farm Prices in the United States
AbstractThe 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 has been the major contributor 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 InfoPaper provided by North Dakota State University, Department of Agribusiness and Applied Economics in its series Agribusiness & Applied Economics Report with number 9368.
Date of creation: 2007
Date of revision:
Government transfers; Productivity growth; Relative farm prices; Agricultural and Food Policy; Agricultural Finance; Productivity Analysis;
Other versions of this item:
- Miljkovic, Dragan & Jin, Hyun J. & Paul, Rodney, 2008. "The role of productivity growth and farmers' income protection policies in the decline of relative farm prices in the United States," Journal of Policy Modeling, Elsevier, vol. 30(5), pages 873-885.
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