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Designing Green Support: Incentive Compatibility And The Commodity Programs

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  • Runge, C. Ford

Abstract

The purpose of this brief analysis is to consider the potential points of contact between a program of "green support" and the existing commodity programs in U.S. agriculture. These points of contact may take the form of conflict, complementarity, or neutrality. We shall assume initially that green support is "added" to the programs as they exist in 1994. Five main commodity program areas are considered: A. Deficiency payments resulting from the loan rate/target price structure B. Acreage reduction programs (ARPs) operating in conjunction with A. C. Conservation compliance, sodbuster and swampbuster programs D. Conservation Reserve Program (CRP) and the Wetland Reserve Program (WRP) E. GATT obligations and "planting flexibility" as a form of decoupling The analysis has four main parts. First, the concept of "incentive compatibility" is explored as the basis of the analysis to follow. Second, the five main program areas noted above are considered in terms of their compatibility with a program of green support. Third is a discussion of what changes in the five program areas would make them more compatible with green support. Finally consideration is given to how the green support program itself might be designed.

Suggested Citation

  • Runge, C. Ford, 1994. "Designing Green Support: Incentive Compatibility And The Commodity Programs," Working Papers 14462, University of Minnesota, Center for International Food and Agricultural Policy.
  • Handle: RePEc:ags:umciwp:14462
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    File URL: http://ageconsearch.umn.edu/record/14462/files/wp94-02.pdf
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    References listed on IDEAS

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    1. Taff, Steven J. & Runge, C. Ford, 1988. "Wanted: A Leaner and Meaner CRP," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 0(Issue 1), pages 1-3.
    2. Heimlich, Ralph E. & Osborn, C. Tim, 1993. "The Conservation Reserve Program: what happens when contracts expire?," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 0(Issue 3), pages 1-6.
    3. Rausser, Gordon C. & Zilberman, David & Just, Richard E., 1984. "The Distributional Effects Of Land Controls In Agriculture," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 0(Number 2), pages 1-18, December.
    4. Heimlich, Ralph E., 1989. "Productivity of Highly Erodible Cropland," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 0(Number 3), pages 1-6.
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