lectur3-page31

lectur3-page31 - farmers if the market price of their...

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I don’t mean to be depressing. I just want you to be aware of some of the issues that you will probably confront. Hopefully, you are getting prepared to confront those future issues while you are here. Think of these as challenges. No, I have not given you any answers yet. If I had all the answers, I would be a very wealthy man, and teaching an economics class for the sheer fun of it. I have some ideas, but I want you to develop your own. I want you to start thinking about your own solutions as objectively as is possible. Back to the budget. Agriculture, $26.6 billion or 1.08% of the total budget. $22.1 billion is allocated to farm income stabilization, and $4.5 billion is ear marked for agricultural research and services. Though not included formally in the budget as an entitlement program, former farm programs paid deficiency payments to many
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Unformatted text preview: farmers if the market price of their commodity was lower than a legislated target price For example if the target price was $3 00 per bushel for corn and the price. For example, if the target price was $3.00 per bushel for corn, and the average market price for corn was $2.80 per bushel; a corn producer would receive a government check for $.20 per bushel of corn produced as a deficiency payment. As I have said before, these programs are being phased out at this time. Transition payments to farmers are now being made and will last only a few years under the current law. Any way you look at it, these payments are transfer payments to individuals or corporations that had to follow certain guidelines to be entitled to 31 them. The budget allocation for USDA was $75.5 billion in 2000 and $85.3 billion in 2005....
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This note was uploaded on 12/29/2011 for the course ECO 210 taught by Professor Malls during the Fall '10 term at SUNY Stony Brook.

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