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Abstract

The acreage reduction requirements in the 1986 wheat and corn programs more than offset the subsidy effects of the target price/deficiency payments affect world markets much like direct export subdidies, and acreage reduction requirements affect markets like an export tax This article estimates export subsidy and tax equivalents of commodity price and income support programs for wheat and corn The 1986 crop-year programs were equivalent to imposing substantial export taxes, although the level of implicit tax was reduced by about half compared with the 1985 crop-year programs

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