Supply Management Policies Research Articles

Dryland farming research in Egypt: Strategies for developing a more sustainable agriculture

AbstractDeveloping and implementing water management strategies is imperative for achieving food self reliance in Egypt. Key elements of the strategy for increasing total value added from agriculture must be directed at enhancing efficiency of water use for crop production. This should be complemented by measures to ensure the efficient use and improvement of developed and undeveloped land resources. We examine the need to shift from supply management policies to demand management policies to optimize water use by fanners. Key features for sustainable development of agricultural water management include: greater investment; infusion of modern, appropriate technologies; building an adequate physical and institutional infrastructure; development of human resources and expertise; intensified cooperation and linkages; and technology development. Communities should be involved in reversing the trend from supply-driven to demand-oriented policies. This should be compatible with consideration of social dimensions.

Comparative Evaluation of Farm Inputs and Services Networks in New York and Ontario

Use, availability, and satisfaction of 22 farm business services by dairy farm households were compared among four neighboring regions in Ontario and New York to examine the effects of government support policy. The supply management policy applied to milk production in Ontario is associated with different input usage and greater perceived availability of farm inputs and services than more market-oriented policies in New York. Families in both countries tended to be more satisfied with supply and production services and less so with labor and loan services. Since availability of services is correlated with density of production and the level of returns, policy changes that result in fewer producers will ultimately cause satisfaction with farm input services to decline.

Exploring State Differences in Groundwater Policy Adoptions, 1980–1989

This article explores a set of variables, based on alternative conceptions of state policymaking, that distinguishes between states adopting groundwater policy changes and states not adopting policy changes during the 1980s. States adopting groundwater supply-management policy changes used and depended on groundwater supplies to a significantly greater extent than non-adopting states. States adopting groundwater quality-protection policy changes had significantly larger numbers of types of identified groundwater contaminants, and were significantly more likely to have a moralistic political culture. Results suggest different patterns of state policymaking with respect to these two policies, and that intergovernmental relations are affected accordingly.

Implications for Agronomists under Present Voluntary Supply Management Policies

Implications for Agronomists under Present Voluntary Supply Management Policies

Energy policy issues in developing countries Lessons from ASEAN's experience

This paper reviews the energy policy responses of the five countries originally composing the Association of Southeast Nations (ASEAN) — Indonesia, Malaysia, the Philippines, Singapore, and Thailand — following the first price shocks of 1973–1974. It analyses the implications of the demand and supply management policies adopted, especially those related to pricing and diversification. It calls attention to the implications of these policies for structural changes in industries, including the shift away from energy-intensive to labour-intensive technologies; the role that technological change and technology transfer can play; the role of the transport sector in conservation, and the scope for oil-to-coal switching. It raises policy and research questions on the allocative efficiency of demand and supply management policies.

Impact of Milk Supply Management Policies on the South

Supply management for milk is defined in this paper as any method used to attempt to balance supply with demand. Price supports, voluntary dairy farmer programs, and mandatory programs were evaluated for the South. Partially as a result of government programs, milk production in the South increased 5% in the 1976 to 1986 while production in the United States increased 20%. Southern dairy farmers participated at a higher rate than US dairy farmers in both the milk diversion and dairy termination programs. Long-term average returns to southern dairy farmers in 1976 to 1985 were well under returns to dairy farmers in other regions, which partially explains the high participation. Southern dairy farmers indicated a poor future in dairy farming and retirement age as major reasons for dairy termination program participation.Southern dairy farmers are expressing mixed opinions regarding supply management programs for the future. “Let the 1985 program work” is one expression. Another group shows concern about low prices, adequate but not excessive supplies for the fluid market, and the family dairy farm. Some prefer mandatory supply management including marketing quotas. Milk price, used alone as the supply management policy, may be a harsh adjustment method for dairy farmers and the dairy industry in the South.

Potential Implications of Supply Management Policies for the Northeast Dairy Sector

Effects of supply management programs on a group of farms or farmers in a region must be evaluated on a case-by-case basis with the parameters of the program clearly spelled out. An analysis demonstrates that when supply management becomes a broad agricultural policy, dairy farmers must consider how milk production relates to the production of grain or other commodities. Various criteria for determining quota allocations among farms or across regions can be supported by reasonable arguments. The criteria chosen can have a substantial impact on the cutbacks any one farmer might be required to make.

A Model of Production with Supply Management for the Canadian Agricultural Sector

AbstractThe production structure of the Canadian agricultural sector is modeled by an output‐constrained multiproduct profit function to account for the existence of supply management policies. The le Chatelier effects of supply constraints are illustrated, and the comparative statics of supply management is shown to depend, under input normality, on the type of jointness. Convexity is tested and accepted, and nonjointness is rejected by the estimated normalized quadratic profit function. The results support the hypothesis of nonjointness due to allocatable fixed factors. Decreasing the supply of managed commodities will increase the supply of unrestricted commodities, while total input use is reduced.

The Relative Effects of Demand and Supply on Output Growth and Price Change

This study demonstrates an analytical model for evaluating the relative importance of demand and supply factors in determining output growth and price change. Empirical analysis of the 1947-80 data shows that, for most industry groups, demand effects are more dominant in determining output growth, whereas supply effects are more dominant in determining price change. The conclusion remains the same when the effects of uncontrollable variables such as taste and technology are excluded. The study provides useful information for analyzing the effectiveness of demand and supply management policies in affecting output growth and price change. Introduction Recently the stability and validity of the Phillips Curve and the effectiveness of demand management policies to deal with stagflation have been questioned by many economists. Evidence has been accumulated, e.g., Eckstein (1984), to suggest that variations in aggregate supply price were the predominant influences on the general price level of the U.S. economy. But little is known about whether demand or supply factors were more dominant in determining economic growth. Studies on the relative importance of demand and supply factors at the industry level have been very few. But the recent studies by Houthakker (1979 and 1981) suggested the importance of supply shifts and/or economies of

Macroeconomic Implications of Employment Tax Credit Policy

Stabilization attempts to alleviate unemployment are characterized by almost exclusive use of traditional demand management monetary and fiscal policies. The rationale for this focus on demand side policies seemingly derives from the neo-Keynesian concern for inadequate aggregate demand as an explanation for economic recessions. In contrast to the Keynesian approach, several economies have recently implemented various forms of short-term supply management policies. The most prominent of these new supply side tools is the employment tax credit (ETC), which provides a tax credit to all firms whose current wage bill exceeds a prescribed base level.''The intent of the ETC is to decrease the real cost of labor and, thereby, induce employers to maintain and possibly increase their use of labor services. Consequently, the emphasis of the ETC contrasts with that of traditional demand management policies that rely on indirect linkages between commodity, money, and labor markets to affect changes in employment and aggregate demand. Most existing analyses of employment tax credit programs and wage bill subsidies focus