Objectives of an Agricultural Price Support Policy
In: Canadian journal of economics and political science: the journal of the Canadian Political Science Association = Revue canadienne d'économique et de science politique, Band 17, Heft 3, S. 344-351
While there is nothing unusual about the practice of giving special price assistance to particularly needy producers in times of emergency, the provision of agricultural price support as a matter of general policy is a comparatively recent development. Despite this fact the circumstances surrounding the adoption of the policy have indicated a considerable variation in objectives. The diversity of aims can perhaps best be shown by a few specific examples.The agricultural price support provided in the United Kingdom during the past decade or more was designed to achieve several purposes. It was supposed to bring about a very definite improvement in the net income and purchasing power position of farmers generally. It was intended to act as a stimulant to production so that the country could become, agriculturally, more self-sufficient and foreign exchange could be conserved. In addition there was the hope that, by increasing the profitability of farming, it would make it financially possible to take advantage of the latest technological developments and thereby increase productive efficiency. All these results were expected to flow from guaranteed prices based on costs and announced well in advance of production.