The role of productivity growth and farmers' income protection policies in the decline of relative farm prices in the United States

Dragan Miljkovic, Hyun J. Jin, Rodney Paul

Research output: Contribution to journalArticle

3 Scopus citations

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.

Original languageEnglish (US)
Pages (from-to)873-885
Number of pages13
JournalJournal of Policy Modeling
Volume30
Issue number5
DOIs
StatePublished - Sep 1 2008
Externally publishedYes

Keywords

  • Farm income protection
  • Productivity growth
  • Relative farm prices

ASJC Scopus subject areas

  • Economics and Econometrics

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