The Case of Removing Price Supports on Feed Grains: Estimated Effects on the U.S. and Nebraska Corn and Livestock Industries

A U.S.-Nebraska linked quarterly econometric model is used to examine i~?acts on the corn, beef and hog industries from immediate and gradual removal of price supports. The results indicate that the agriculture sector is more adversely affected from removal of price supports gradually than expeditiously. Also, the gradual adjustment approach produces greater cyclical movements in prices and quantities. Corn exports are not greatly affected under either market adjustment process.