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Impacts of Alternative Farm Policies on Rural Communities

Published online by Cambridge University Press:  05 September 2016

J.M. Bowker
Affiliation:
Nova Scotia Agricultural College
James W. Richardson
Affiliation:
Department of Agricultural Economics, Texas A&M University
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Abstract

The purpose of this study was to describe an LP/IO model for evaluating the economic impacts of alternative farm policies on rural communities and demonstrate its capabilities by analyzing the impacts of three farm policies on a rural community in Texas. Results indicate that in the noncrop sector, two groups of industries are most affected by farm policy. The first group relates to production directly (agricultural services, banking and credit, and nondurable manufacturing) and the second group relates to households (retail trade and services). Farm policies which reduce production but increase net returns cause losses for the first group while benefitting the second group. Both groups are made worse off by farm policies which reduce agricultural production and the value of output.

Type
Submitted Articles
Copyright
Copyright © Southern Agricultural Economics Association 1989

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