Acreage Control Research Articles

Analysis of Agricultural Rice Production in Jambi: Study of Acreage Response Under Price Policy Program

The main objective of this research were to analyze the impact of some agricultural investments in rice production, The increasing trend of rice production in Jambi during the years of study (1986-2010) has been resulted from considerable increase in government improving policy programs, such as support price, and input subsidy programs. The variations of acreage, yield, and output have been affected also by the price of output and input such as fertilizer. The more effectiveness between price support policy and input subsidy policy depend on the higher magnitude between the significant coefficients of these two variables. The first policy implication from the findings of this study is that the price support policy is more effective and efficient to increase the acreage. The effect of government support prices for rice is very important in analyzing the acreage response. Since the role of government support prices in this new environment has received very much attention in policy implications. A method of measuring price expectation for analyzing acreage response is used when the influence of price support and market phenomena varies with market conditions. It assumes that the effect of changes in government policies because similar programs for acreage control and price support are likely form of future policies. A method of evaluating support, and acreage restriction is developed and tested to see the impact of changing government programs. The results show that when the support price is much below the expected market price, the truncationeffect is negligible and the price support program has only a limited impact on acreage decisions. Alternatively, as the support price levels, the truncation effects become larger, and the resulting impact on acreage decisions is more pronounced.

The distributional effect of the rice policy in Japan, 1986–2010

This study aims to evaluate the distributional effect of the governmental rice policy in Japan on producers, consumers, and government expenditures from 1986 to 2010 using a partial equilibrium model. Policy measures include government purchase of rice, output payment, and acreage control. The simulation result shows that acreage control has been the principal policy measure for transferring income to producers, especially since the enforcement of the WTO Agreement on Agriculture. Acreage control is the policy measure with the lowest total efficiency and highest budgetary efficiency. This result implies that the government’s goal of transferring income to producers with minimum government cost has been achieved through a combination of policy measures.

Convergence of Rice Productivity in Japan under Rice Acreage Control Programmes

Convergence of Rice Productivity in Japan under Rice Acreage Control Programmes

Japanese Rice Market Liberalization: A Competitive Equilibrium Approach

This paper quantifies the effect of Japanese rice imports on the Japanese rice market with special attention to the farmland market in the year 2000, based on information available in 1997. Tariff and quota policies do not affect the equilibrium price of rice and rent significantly, given the current acreage controls. The removal of the acreage control programme would reduce the autarky price of rice by 30%. With free importation of rice into Japan, the price of rice would be halved, and the potential increase in the consumer surplus could be 0.3% of the 1995 Japanese GDP. JEL Classification Numbers: F14, Q17, Q18.

Estimating crop supply response in the presence of farm programmes: application to the CAP

This paper proposes an analytical framework allowing estimation of the effects of the new instrumentation of the CAP in the arable crop sector--price cuts, compensatory payments and land set-aside schemes--on crop acreage allocations, supplies and yields. Duality theory is used to model crop supply response in the presence of voluntary acreage control programmes and direct aids per hectare to producers. The definition of a profit function where total land is fixed but allocatable to the various crops allows us to obtain, via the envelope theorem, output and variable input equations, which can be used with the first-order conditions for an optimal land allocation as a basis for comparative statics analysis of the three main instruments of the CAP. Copyright 1996 by Oxford University Press.

Stabilizing the U.S. Corn Market

This article considers stabilization policies when the government acts before and after the weather is known, uses intervention rules that exclude discretion, and considers multiple policy instruments. Simulations shed light on the benefits and costs of corn-market stabilization and the desirability of acreage control or scarcity policy. Coordinated policies consistently reduce the variability of farm prices and incomes. Further, welfare comparisons against the unregulated market are favorable for some programs. Perhaps the government should avoid joint management of acreage and inventories, though, unless there are exceptional circumstances.

Price Support, Acreage Controls, and Efficient Redistribution

This study is concerned with the combination of target price and acreage controls as the two major mechanisms of farm policy. Acreage controls are shown to enhance the efficiency of redistribution under a target price program. More specifically, this study demonstrates that if the traditional Cobb-Douglas production function is assumed, acreage controls do not enhance the efficiency of target price programs in the process of redistributing income to the farm sector. The study proves that if the elasticity of substitution between land and all other inputs is less than one, then the income redistributional costs are likely to be reduced. Moreover, by using an empirical estimate of the elasticity of substitution and farm data for the time period 1984-88, this study demonstrates that acreage control programs have drastically reduced the deadweight losses associated with income redistribution flowing from target price programs. These results lend strong support to the public choice notion that politicians favo...

Effects of Price Support, Acreage Control, and Technical Progress on Agricultural Income in Rice Farming

Effects of Price Support, Acreage Control, and Technical Progress on Agricultural Income in Rice Farming

Effects of Alternative Acreage Restriction Provisions on Alabama Cotton Farms

AbstractThe 1985 Farm Bill departs from recent farm bills in moving toward more restrictive acreage control. The change from a two- to a five-year average in calculating base acreage and enforcement of limited cross-compliance appear to significantly alter crop mix decisions on representative Alabama cotton farms.

Goals and Consequences of Rice Policy in Japan, 1965–80

AbstractThe change in welfare of producers and consumers, government cost, and the deadweight loss arising from the various forms of government interventions into the rice market in order to protect domestic producers in Japan are estimated in a partial equilibrium framework. Results of the quantitative analysis indicate that the motivation of the government was to minimize budget costs in achieving the target level of producer price support, while consumer welfare had an insignificant weight in the government's objective function. It is aiso found that acreage control is a “second best” policy to reduce social inefficiency produced from other forms of market distortions.

Acreage control plan to aid fertilizer use in 1984

Acreage control plan to aid fertilizer use in 1984

Multiple Input, Multiple Output Production Choices and Technology in the U.S. Wheat Region

AbstractDuality theory motivates a translog expected profit function consistent with multiple products, price uncertainty, preseason climate constraints, acreage control policies, and possibly nonhomothetic technology. Although multiple outputs are allowed, enterprise specific data is not necessary. Instead, time‐series measures of output revenues and expected prices, input expenses and prices, and fixed input flows are employed. Appropriate measures of elasticities of choice, returns to size, and biases in technological change are derived. Results indicated decreasing returns to size, rather limited, though complementary, responsiveness of choices to price changes, and the nature of biases in technological changes.

An Analysis of Competing Agricultural Land Uses

Several alternative government programs have been used in the past to achieve policy objectives related to the levels of crop acreage and net farm income. Important questions remain relating to the effectiveness of past programs in achieving selected policy objectives. In particular, what is the relative effectiveness of long-term versus short-term acreage diversion programs? One of the major impacts of government diversion programs is in the allocation of land among competing uses. Several studies (Brandow and Learn; Christensen and Aines; Hathaway) indicate that the use of acreage control on single crops rather than on all crops results in less than proportionate reduction in output from a given reduction in acreage. However, only limited information is available on the interrelationships among major competing uses of crop, pasture, and privately owned forest acreage. Studies of these interrelationships (e.g. Dideriksen et al. and Zeimetz et al.) did not consider the influence of government programs. In particular, how do government programs affect these competing uses?

Returns to Public Irrigation Development and the Concomitant Cost of Commodity Programs: Discussion

Martin addresses himself to what many economists as well as others have viewed for years as seemingly contradictory and inefficient government policies: namely, that the federal government has simultaneously supported the Bureau of Reclamation's water development, output-increasing activities and in Martin's words "effected commodity programs designed to reduce the supply of major agricultural commodities .. ." The underlying question being posed by Martin differs somewhat from what one generally would expect to encounter in considering this apparent contradiction. Most previous assessments of Bureau activity are specific to particular projects and use a standard benefitcost framework of analysis. Benefit calculation assumes a perfectly elastic demand curve for commodities to be produced by the single marginal project being evaluated. One does not need great analytical ability to conclude that, generally, an acreage control program operating within the project area would be at cross-purposes at least in the short run, with respect to societal efficiency in the production of agricultural products. Martin, however, poses a different question. He is saying, essentially, what is done is done and is unlikely to be changed. But how do the aggregate costs and benefits of federal irrigation development over the past seventy-five years compare? And in aggregate, have federal projects really had a significant effect on commodity program costs? Quite rightly, Martin argues that while the elasticity of demand for agricultural output may be close to infinity for the Bureau's smallest, 221-acre project, it could not be infinite over all of its 9.3 million acres. Martin then formulates the conceptual framework for the problem in terms of the familiar Marshalian

Supply Analysis for Corn in the United States: The Impact of Changing Government Programs

AbstractAcreage supply relationships for corn in the United States are analyzed for 1948–70. Emphasis is on the effect of changes in government policies because similar programs for acreage control and price support are the most likely form of future policies. A model for empirical evaluation of loan rates, support and diversion payments, and acreage restrictions is developed and tested. More than 95 percent of the variation in U.S. corn acreage during the study period can be associated with the selected policy variables. The approach suggested in this research appears to be applicable to other crops heavily influenced by government policy.

Whitecapping: Agrarian Violence in Mississippi, 1902-1906

American South at the beginning of the twentieth century. The two issues were not always related, but on occasions they did complement one another. Southern farmers, the victims for more than three decades of the share-crop and crop-lien systems, faced problems of overproduction, falling prices, and inadequate supplies of capital and credit. Organizations ranging from the Grange to the Farmers' Alliance had attempted to help farmers by offering such constructive programs as acreage control, co-operative marketing, cheaper credit, and better farming methods.' Unfortunately for their cause, the racist and nativist elements of the farm organizations tacked on to these laudable goals a steadfast determination to control the Negro. By the 1890's the anti-Negro sentiments that Southern farmers had long held became widespread throughout the nation as many Northern liberals and the national government acquiesced in a mounting tide of racist thought. Within the South during the late 1890's racism became more intense when Democratic leaders attempted to win the support of white Populists by advocating disfranchisement and segregation of the Negro. Probably no other group espoused this anti-Negro sentiment more strongly than the small farmers who for so long had experienced hard times.2 Historians have devoted much attention to the various phases