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In: American Journal of Agricultural Economics, Band 97, Heft 5, S. 1287-1297
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In: Applied economic perspectives and policy, Band 44, Heft 3, S. 1204-1221
ISSN: 2040-5804
AbstractCurrent farm policy includes a diverse set of programs intended to provide a financial safety net for producers of grains, oilseeds, and cotton. These programs make payments contingent on national market prices and yields at the farm or county level. A review of data for the 2014–2020 period demonstrates the successes and limitations of crop insurance, agriculture risk coverage and price loss coverage at offsetting reductions in national net market revenues for particular crops. Forward‐looking stochastic analysis confirms these programs protect against different types of risks but provide support levels that can vary greatly across commodities and time.
The exponential growth of the biofuels industry has created significant increases in feed prices to the livestock sector. In February and March of 2007, the National Cattlemen's Beef Association and the National Pork Producers called for the nonrenewal of the $0.51-per-gallon excise tax credit for ethanol as well as elimination of the $0.54-per-gallon import tariff on ethanol. This study uses a stochastic model to analyze the impact of not extending the ethanol tax credit, the ethanol import tariff, or the $1.00-per-gallon biodiesel tax credit on the biofuels and agricultural commodity markets. The Renewable Fuel Standard mandate requiring a minimum of ethanol use is maintained. The study finds that future growth in biofuels relies heavily on the extension of the tax credits and import tariff. Commodity prices will fall without the extension of them and make net farm income drop by an average of $3.1 billion per year over the 2011-2016 period. This is because lower feed prices for livestock producers represent low output prices for crop farmers. ; Includes bibliographical references
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In: Review of Agricultural Economics, Band 27, Heft 3, S. 317-335
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