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Abstract
An aggregate acreage supply model for the Canadian prairie provinces is estimated under the
assumption that farmers base acreage allocation decisions on the rational ex-ante expectationa and variance of
net per hectare revenue. In order to account directly for the effects of government intervention during the
period of estimation, a structural model of the Western Grains Stabilization Program is incorporated into the
estimation framework. Results indicate that the revenue enhancement and revenue stabilization effects of the
program both contributed nearly equally to modest increases in cropped acreage between 1976 and 1990.