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This study is aimed at estimating the magnitude of direct government payments required for retiring excess cropland under various supply control programs which maximize efficiency of crop production and land use in 1965 for the United States. Costs are estimated for eight simulated farm programs. Six of these farm programs are derived from an interregional linear programming model which minimizes crop production costs for a given level of total output. The remaining two programs are alterations of two programming solutions. After costs for each of the simulated programs are computed, costs for each program are compared with costs of supply control programs between 1961 and 1964. After these comparisons are completed, costs are calculated for purchasing the unused land indicated under each simulated program. Land purchase costs are then compared with the costs of simulated farm programs and costs of 1961-64 supply control programs. Finally, costs are estimated for insuring a positive-sum gain for non-farm persons involved in adjustments under more efficient land use programs.

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Center for Agricultural and Economic Development, Iowa State University


Ames, IA


Agricultural and Resource Economics | Agricultural Economics | Economics

Costs of marginal and retirement programs