DESIGNING GREEN SUPPORT: INCENTIVE COMPATIBILITY AND THE COMMODITY PROGRAMS

The purpose of this brief analysis is to consider the potential points of contact between a program of "green support" and the existing commodity programs in U.S. agriculture. These points of contact may take the form of conflict, complementarity, or neutrality. We shall assume initially that green support is "added" to the programs as they exist in 1994. Five main commodity program areas are considered: A. Deficiency payments resulting from the loan rate/target price structure B. Acreage reduction programs (ARPs) operating in conjunction with A. C. Conservation compliance, sodbuster and swampbuster programs D. Conservation Reserve Program (CRP) and the Wetland Reserve Program (WRP) E. GATT obligations and "planting flexibility" as a form of decoupling The analysis has four main parts. First, the concept of "incentive compatibility" is explored as the basis of the analysis to follow. Second, the five main program areas noted above are considered in terms of their compatibility with a program of green support. Third is a discussion of what changes in the five program areas would make them more compatible with green support. Finally consideration is given to how the green support program itself might be designed.


Issue Date:
1994
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/14462
Total Pages:
39
Series Statement:
Working Paper WP94-02




 Record created 2017-04-01, last modified 2017-08-22

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