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CED-81-70(III) 1 (1981-06-26)

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PREPARED FOR

Report To The Congress

THE U.S. GENERAL ACCOUNTING OFFICE


Farmer-Owned Grain Reserve Program
Needs Modification To Improve
Effectiveness: Theoretical And Empirical
Considerations In Agricultural Buffer
Stock Policy Under The Food And
Agriculture Act Of 1977

                                 By Dr. Richard E. Just
                         Volume 3 Of Three Volumes


Dr. Just's analysis indicates that price stabili-
zation in both the grain and livectock markets
due to the farmer-owned grain reserve was
minor. The benefits from short-term stabili-
zation were nut sufficient to outweigh the re-
lated economic costs. As a result, the program
led to a net economic loss over the 2-year
period of the study, considering all affected
market groups.









                                                 CED-81-70
  1C'COU<'C                                     JUNE 26, 1981

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