Agricultural Prices in the 1970's: How Will Value be Established?

The method of value determination for agricultural commodities and products is likely to be of major concern during the balance of the 1970's. Food and agricultural prices are currently in the forefront of public interest. This concern is likely to continue and be more dramatic at times during the rest of this decade. Attention is likely to focus on the marketplace and arrangements for price determination.Several writers in the field argue that the manner in which agricultural prices are determined presents some major equity problems. They envision more problems ahead. Some conclude that there must be better mechanisms, institutions, organizational arrangements and procedures for determining the value of agriculture products. This concern implies a belief that a relationship exists between the method or process of price determination and performance. However, we know very little about the formation of prices, and we have very little empirical evidence on which to base firm conclusions about alternative arrangements.