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An Analysis of the Farmer-Owned Reserve Program, 1977–82

Author

Listed:
  • Larry Salathe
  • J. Michael Price
  • David E. Banker

Abstract

An econometric model of the U.S. agricultural sector is utilized to examine the effects of the Farmer-Owned Reserve Program on crop and livestock production and prices, farm income, crop carry-over levels, and government outlays. The program has had a positive impact on commodity prices and farm income but has not significantly reduced the annual variation in commodity prices. It also increased government outlays for agricultural commodity programs, but all of the increase is potentially recoverable. The continued use of the FORP to enhance commodity prices likely will lead to excessive government outlays in the long run.

Suggested Citation

  • Larry Salathe & J. Michael Price & David E. Banker, 1984. "An Analysis of the Farmer-Owned Reserve Program, 1977–82," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 66(1), pages 1-11.
    • Handle: RePEc:oup:ajagec:v:66:y:1984:i:1:p:1-11.
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    File URL: http://hdl.handle.net/10.2307/1240610
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    Cited by:

    1. Lin, William & Glauber, Joseph & Hoffman, Linwood & Collins, Keith & Evans, Sam, 1985. "The Farmer-Owned Reserve Release Mechanism And State Grain Prices," Staff Reports 277799, United States Department of Agriculture, Economic Research Service.
    2. Gavett, Earle E. & Grinnell, Gerald E. & Smith, Nancy L., 1986. "Fuel Ethanol and Agriculture: An Economic Assessment," Agricultural Economic Reports 308014, United States Department of Agriculture, Economic Research Service.
    3. Hoffman, Linwood & Glauber, Joseph, 1987. "Effects Of Public Stock.Holding Programs Upon Grain Stock Enhancement," 1987 Annual Meeting, August 2-5, East Lansing, Michigan 269981, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Langley, James A. & Price, J. Michael, 1985. "Implications of Alternative Moving Average Loan Rates," Agricultural Economic Reports 307994, United States Department of Agriculture, Economic Research Service.
    5. Lin, William & Glauber, Joseph & Hoffman, Linwood, 1985. "Short-Run Effects Of The Farmer-Owned Reserve Program On Grain Price Enhancement And Stabilization," 1985 Annual Meeting, August 4-7, Ames, Iowa 278653, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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