The Outlook For Farm Commodity Program Spending PDF Download

This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1988 Excerpt: ... in the 1985 farm bill. Exports rebound from the dismal performance of the 1985 crop year, generally following an upward trend, but do not reach the levels seen at the beginning of the decade. Stocks fall to manageable levels for all crops. Cotton stocks are already at relatively low levels, excess rice and soybean stocks will be mostly gone by the end of this crop year, and another year of use (consumption) exceeding production is needed to bring wheat stocks down. Reducing corn stocks to reasonable levels will take more time, unless an unforeseen event causing a shortfall in production or a surge in demand provides an opportunity to reduce stocks quickly. Government program assumptions both affect and are affected by the outlook for the crops. Acreage controls are used early in the projection period to constrain production and thus allow stocks to be reduced. As stocks drop and export demand grows, acreage controls are relaxed, allowing greater production so that market demand may be met while prices remain at competitive levels. The maximum allowed unpaid acreage reduction program requirement is maintained in corn throughout the period, and the paid land diversion is reduced and then eliminated to let production grow as stocks decline. Potential expansions in planting caused by the reduction of acreage controls in the crop programs are partly offset by rising enrollment of land in the conservation reserve program, which is projected to reach 45 million acres by 1990. The dairy program is very different from the crop programs; while export demand is key in determining market conditions for the field crops, the dairy market is dominated by domestic supply and use factors. The dairy program in the Food Security Act requires annual milk price support reducti...