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U.S. Farm Policy and the Variability of Commodity Prices and Farm Revenues AgEcon
Lence, Sergio H.; Hayes, Dermot J..
A dynamic, three-commodity rational-expectations storage model is used to compare the impact of the Federal Agricultural Improvement and Reform (FAIR) Act of 1996 with a freemarket policy and with the agricultural policies that preceded the FAIR Act. Results support the hypothesis that the changes made when FAIR was enacted did not lead to permanent significant increases in the volatility of farm prices or revenues. An important finding is that the main economic impacts of the Pre-FAIR scenario, relative to the free-market regime were to transfer income to farmers and to substitute government storage for private storage in a way that did little to support prices or to stabilize farm incomes.
Tipo: Working or Discussion Paper Palavras-chave: FAIR Act; Farm prices; Free-market policy; Rational-expectations storage model; Revenue; Agricultural and Food Policy.
Ano: 2000 URL: http://purl.umn.edu/18371
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How Retail Beef and Bread Prices Respond to Changes in Ingredient and Input and Costs AgEcon
Roeger, Edward; Leibtag, Ephraim S..
The extent to which cost changes pass through a vertically organized production process depends on the value added by each producer in the chain as well as a number of other organizational and marketing factors at each stage of production. Using 36 years of monthly Bureau of Labor Statistics price indices data (1972-2008), we model pass-through behavior for beef and bread, two retail food items with different levels of processing. Both the farm-to-wholesale and wholesale-to-retail price responses are modeled to allow for the presence of structural breaks in the underlying long-term relationships between price series. Broad differences in price behavior are found not only between food categories (retail beef prices respond more to farm-price changes than do...
Tipo: Report Palavras-chave: Pass through; Wholesale; Retail; Farm prices; Beef; Bread; Supply chain; Price transmission; Price response; Demand and Price Analysis; Livestock Production/Industries.
Ano: 2011 URL: http://purl.umn.edu/102757
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