Skip to main content
Article
Impacts and Incidence of Agricultural Commodity Programs
Economic Development and Cultural Change
  • E. Kwan Choi, Iowa State University
  • Stanley R. Johnson, Iowa State University
Document Type
Article
Publication Version
Published Version
Publication Date
4-1-1993
Abstract

This paper analyzes the incidence of agricultural commodity programs. Producers advocate commodity programs and receive price subsidies, but free entry and perfectly elastic supplies of nonland inputs ensure that landowners extract the entire surplus from price subsidies. Moreover, an increase in the target price raises the land rent more than proportionately. Although landless producers benefit from commodity programs in the short run, they do not in the long run. Roughly 60 percent of program benefits go to producers who own land, and the remainder to landowners.

Comments

This article is from Economic Development and Cultural Change 41 (1993): 605–621. Posted with permission.

Copyright Owner
The University of Chicago
Language
en
File Format
application/pdf
Citation Information
E. Kwan Choi and Stanley R. Johnson. "Impacts and Incidence of Agricultural Commodity Programs" Economic Development and Cultural Change Vol. 41 Iss. 3 (1993) p. 605 - 621
Available at: http://works.bepress.com/ekwan-choi/6/