Premium
An Analysis of the Farmer‐Owned Reserve Program, 1977–82
Author(s) -
Salathe Larry,
Price J. Michael,
Banker David E.
Publication year - 1984
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1240610
Subject(s) - commodity , agricultural economics , agriculture , economics , government (linguistics) , livestock , production (economics) , conservation reserve program , carry (investment) , econometric analysis , econometric model , business , finance , macroeconomics , econometrics , forestry , ecology , linguistics , philosophy , biology , geography
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.