@article{ed5301409edf4a5da166c6fa29531460,
title = "The role of productivity growth and farmers' income protection policies in the decline of relative farm prices in the United States",
abstract = "The paper emphasizes three interrelated questions about the decline in relative farm to non-farm prices in the United States since 1973: (1) Is it unusual, (2) What caused it, and (3) Is it likely to continue? We find that based on historical and international evidence this phenomenon may be considered unusual. Separating farm price and income support in 1973 and growing relative productivity in agriculture have been the major contributors to changing the trend of the relative farm goods inflation. This trend is likely to continue based on predicted steady growth of relative agricultural productivity and continuation of direct payments and other forms of farm income support policies.",
keywords = "Farm income protection, Productivity growth, Relative farm prices",
author = "Dragan Miljkovic and Jin, {Hyun J.} and Rodney Paul",
note = "Funding Information: Prior to the 1970 farm bill, supporting farm prices and incomes was not separated. That all changed in 1973 when farm price and income support were finally separated. While price support was provided by traditional Commodity Credit Corporation (CCC) loans, income support was provided by direct farmer payments. It is important to first establish that direct payments to farmers in the United States actually increased significantly since 1973. Data on direct government payments to U.S. farmers from the U.S. Department of Agriculture, Economic Research Service (USDA-ERS) for the period 1974–2003 indicate that payments on average doubled every year during this period. In 1974, U.S. farmers were given direct payments of approximately US$ 530 million, while that number in 2003 was almost US$ 16 billion. The payment peaked at almost US$ 23 billion in 2000. ",
year = "2008",
month = sep,
doi = "10.1016/j.jpolmod.2007.01.006",
language = "English (US)",
volume = "30",
pages = "873--885",
journal = "Journal of Policy Modeling",
issn = "0161-8938",
publisher = "Elsevier",
number = "5",
}