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Supplementing farm price policy by direct income payments: cost-benefit-analysis of alternative farm policies with a special application to German agriculture

Supplementing farm price policy by direct income payments: cost-benefit-analysis of alternative farm policies with a special application to German agriculture

European Review of Agricultural Economics 4(1): 1-31

Increasing problems of EEC farm price policy in balancing allocative and distributive objectives have evoked much criticism and several suggestions for alternative policies. The paper proposes to gradually complement price policy by direct income payments to farmers. Methodological problems of estimating the economic effects of such a policy shift are discussed. Results of an empirical study for German agriculture are presented. Political problems of implementing this policy are considered.

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Accession: 000518690

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DOI: 10.1093/erae/4.1.7

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