Agricultural Policy for the 21st Century by Luther G. Tweeten, Stanley R. Thompson

By Luther G. Tweeten, Stanley R. Thompson

Agricultural coverage reform has develop into a truly scorching subject. Over the following couple of years we are going to see the investment for those courses being hotly debated. The thesis of this publication is better-informed public is vital to carry rationality to farm coverage. This e-book offers telling facts that markets paintings, that useful advertisement farmers will earn returns on their assets as excessive as these earned somewhere else within the absence of source of revenue move to farmers.

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AMTA payments were set up to be fixed regardless of market prices, but in 1998, 1999, and 2000 AMTA payments were augmented by 50 percent, 100 percent, and 100 percent, respectively, in emergency market-loss assistance payments to compensate producers for low prices. Although details are complicated, the basic economic analysis of the FAIR Act programs is simpler than was the case with the former programs. AMTA payments arguably have no effect on farmers’acreage or other production decisions, since the payment is the same no matter what the farnier does.

2001). The latter is one estimate of the loss in farmland value if payments were terminated Farm Commodity Programs: Essential Safety Net or Corporate Welfare? 23 without reform in price support, insurance subsidy, and trade policies. Because withdrawal of commodity programs would cause major wealth losses, a phased rather than immediate withdrawal of programs seems warranted (see Orden, Paarlberg, and Roe 1999 ). Congress was unable to adhere to the phased withdrawal called for in the 1996 farm bill.

Instead, they need to seek supplemental off-farm income, add livestock or leased land, or move to situations offering a brighter future. 9. The attrition for farmers and small nonfarm businesses are not strictly comparable-we do not but would like to know what percentage of new starts in farming survives for five years. 10. Retirements (including deaths) were estimated from the aged operator cohort in 1987 (Tweeten and Zulauf 1995,216), hence are only an approximation for 1992-97. 11. Farmers are fortunate indeed that commodity programs are not welfare for the poor, because, under 1996 federal law, welfare recipients are only entitled to payments for five years.

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