COMMODITY POLICY, PRICE INCENTIVES, AND THE GROWTH IN PER-ACRE YIELDS

We estimate the influence of policy-induced price changes and of technology supply on North Carolina flue-cured tobacco yields. The decline in land rent and effective output price that accompanied a 1965 policy change from acreage allotments to poundage quotas caused a 12 percent decrease in yields. Farmer yields were more responsive to yield-increasing technologies under acreage allotments than under poundage quotas. Annual yield growth was 0.5 percent under poundage quotas and 4.32 percent under acreage allotments. The growth rate decline is attributable to changes in relative prices and to a slowdown in the supply of available technologies.


Issue Date:
1993-07
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/15194
Published in:
Journal of Agricultural and Applied Economics, Volume 25, Number 1
Page range:
253-265
Total Pages:
13




 Record created 2017-04-01, last modified 2017-08-23

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