Trade, Uncertainty And New Farm Programs
I have contended for some years that the principal economic problem facing commercial agriculture is instability (Tweeten 1989, p.30). Instability potentially threatens not only farmers' financial viability but also consumers' food security, given the desire for stable food consumption in the face of production destabilized by man and nature. Some observers expect instability to be a more pressing food security problem because of global farm policy liberalization (see Johnston and Schertz, p.24; for an alternative view see Collins and Glauber). Trade policy and farm commodity policy are inextricably linked. This paper recognizes that both types of policies are causes and cures for economic instability. The paper begins with an examination of the contribution of two key variables, yields and exports, to economic volatility in agriculture that could influence the need for commodity program stabilization policies. Trends in annual yield volatility give clues whether changing technology is affecting food system stability over time. The second section of the paper quantifies sources of food system variability in the United States. Emphasis is on the role of exports as a stabilizer or destabilizer of that system. Finally, the paper expands its scope to examine instability and public policy considerations within the new paradigm for American agriculture which I have outlined in another paper with Carl Zulauf (Tweeten and Zulauf). The concluding section raises serious concerns over consequences of political pressure for higher commodity loan rates and for crop and revenue insurance programs featuring larger public income transfers from taxpayers to farmers.
|Date of creation:||1999|
|Date of revision:|
|Contact details of provider:|| Postal: 2120 Fyffe Road, Columbus, Ohio 43210-1099|
Web page: http://www-agecon.ag.ohio-state.edu/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Makki, Shiva S. & Tweeten, Luther & Gleckler, James, 1994. "Agricultural trade negotiations as a strategic game," Agricultural Economics, Blackwell, vol. 10(1), pages 71-80, January.
- Shiva S. Makki & Luther G. Tweeten & Mario J. Miranda, 1996. "Wheat Storage and Trade in an Efficient Global Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(4), pages 879-890.
- Makki, Shiva S. & Tweeten, Luther, 1994. "Agricultural trade negotiations as a strategic game," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 10(1), January.
When requesting a correction, please mention this item's handle: RePEc:ags:ohsesp:28330. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.