CRS REPORT FOR CONGRESS

A July 20 Congressional Research Report “Measuring Equity in Farm Support Levels”- by Randy Schnepf, Specialist in Agriculture Policy, is attached.

EXCERPT: This report looks at available data for the major program crops and compares support rates per unit, total payments, payments per harvested acre, payments as a share of the value of production, and payments as a share of the total cost of production. In addition, price and income support levels are compared to market prices. By all of these measures there has been little equity across commodities. However, farmers often have argued for equity based on cost of production. Economists, on the other hand, would use trend (or a moving average of) market prices as the basis for setting support prices in order to avoid market distortions and resource misallocations.

10-0816-CRS-RL34053

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