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Market And Welfare Effects Of Livestock Feed Subsidies In Southeastern New Mexico


  • Skaggs, Rhonda K.
  • Falk, Constance L.


Input subsidies have the potential to increase production, promote more input use, and impact the environment. Unlike many other federal agricultural subsidies, livestock feed programs have not been the subject of previous economic research. During 1992-96, the U.S. Department of Agriculture paid livestock producers an annual average of $73.2 million in feed subsidies. The objective of this research is to estimate the market and welfare effects of feed subsidies in one region of New Mexico. The price and output effects of the subsidy are found to be small, and the welfare impacts of the subsidy unevenly distributed between subsidized and nonsubsidized producers.

Suggested Citation

  • Skaggs, Rhonda K. & Falk, Constance L., 1998. "Market And Welfare Effects Of Livestock Feed Subsidies In Southeastern New Mexico," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(02), December.
  • Handle: RePEc:ags:jlaare:31199

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    References listed on IDEAS

    1. Anderson, James E & Bannister, Geoffrey J & Neary, J Peter, 1995. "Domestic Distortions and International Trade," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 36(1), pages 139-157, February.
    2. Anderson, James E & Neary, J Peter, 1994. "Measuring the Restrictiveness of Trade Policy," World Bank Economic Review, World Bank Group, vol. 8(2), pages 151-169, May.
    3. J. Peter Neary & Albert G. Schweinberger, 1986. "Factor Content Functions and the Theory of International Trade," Review of Economic Studies, Oxford University Press, vol. 53(3), pages 421-432.
    4. James E. Anderson, 1991. "The Coefficient of Trade Utilization: The Cheese Case," NBER Chapters,in: Empirical Studies of Commercial Policy, pages 221-244 National Bureau of Economic Research, Inc.
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    Cited by:

    1. Elanor Starmer, Aimee Witteman and Timothy A. Wise, "undated". "06-03 "Feeding the Factory Farm: Implicit Subsidies to the Broiler Chicken Industry"," GDAE Working Papers 06-03, GDAE, Tufts University.
    2. Timothy A. Wise, "undated". "05-07 "Identifying the Real Winners from U.S. Agricultural Policies"," GDAE Working Papers 05-07, GDAE, Tufts University.

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    Agricultural and Food Policy;


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