By Luther G. Tweeten, Stanley R. Thompson
Agricultural coverage reform has develop into a truly sizzling subject. Over the subsequent couple of years we are going to see the investment for those courses being hotly debated. The thesis of this e-book is better-informed public is key to carry rationality to farm coverage. This ebook offers telling facts that markets paintings, that powerfuble 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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Extra info for Agricultural Policy for the 21st Century
INTRODUCTION The subject of agriculturalpolicy is a broad one, covering topics fiom the production of agricultural raw materials to the consumption of final food products. Luther Tweeten has had something to say on almost all of them, but I will focus on some that have been central to his work. These topics concern appropriate policies for commercial agriculture and farm people, with an emphasis on commodityprograms. But first I want to discuss briefly the broader issue of the “agricultural economics paradigm” to which this book calls attention,and the question ofhow that paradigm generates policy implications.
Similarly, many farmers view a safety net as essential to countervail the market power of agribusinesses that are growing larger and more concentrated. Several observations are warranted. First, neither economic theory nor empirical evidence indicates that American farmers are systematically exploited by foreign governments or domestic agribusiness f m s (see chapter 7). To be sure, imperfect competition characterizes many agribusinesses. However, the oligopolistic(few firms) market structure that characterizes much agribusiness is recognized for massive advertising and innovation to expand food and fiber sales.
The nation ordinarily does not subsidize consumption goods such as yachts or pleasure cruises. 4. Data were available only through 1996 (Council of Economic Advisors 2000,418, and earlier issues), but were extrapolated to 1999. 1 of excess farm output induced by programs. Farm Commodity Programs: Essential Safety Net or Corporate Welfare? 31 6. Government outlays, which are mostly transfers between taxpayers and producers, should not be confusedwith deadweightcosts, which are a loss in national income.
Agricultural Policy for the 21st Century by Luther G. Tweeten, Stanley R. Thompson