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A Variable Price Support Farm Program: A Transition Tool to a Free Market

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  • Huang, Wen-Yuan
  • Hyberg, Bengt
  • Segarra, Eduardo

Abstract

This paper analyzes a variable price support program (VPS) as an alternative to the current farm income support program. The VPS program can control U.S. agricultural production while protecting income of small farmers. The VPS is designed to alter farm level production decisions by reducing commodity support prices for each additional unit of production produced. This will serve to discourage excess aggregate production. The VPS program can be a mechanism to stabilize income of efficient small farms during the transition from the current farm programs to a free market environment. An illustrative study is used to target government program benefits to various farm-size groups.

Suggested Citation

  • Huang, Wen-Yuan & Hyberg, Bengt & Segarra, Eduardo, 1990. "A Variable Price Support Farm Program: A Transition Tool to a Free Market," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 22(1), pages 133-144, July.
    • Handle: RePEc:cup:jagaec:v:22:y:1990:i:01:p:133-144_00
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    3. David R. Lee & Peter G. Helmberger, 1985. "Estimating Supply Response in the Presence of Farm Programs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(2), pages 193-203.
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    5. Mark Lowry & Joseph Glauber & Mario Miranda & Peter Helmberger, 1987. "Pricing and Storage of Field Crops: A Quarterly Model Applied to Soybeans," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(4), pages 740-749.
    6. Lederer, Thomas H. & Pollack, Susan L., 1988. "1987 Budget Acts: Description Of Changes In Agricultural Policies And Programs," Staff Reports 278005, United States Department of Agriculture, Economic Research Service.
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    1. Huang, Wen-Yuan & Hyberg, Bengt, 1991. "Determination of a Variable Price Support Schedule as Applied to Agricultural Production Control," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 43(3), pages 1-7.

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