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Abstract

The commercial farm problem has been defined as an excess of farm output over utilization at "satisfactory" prices. Evidence of farm production in excess of market outlets has been apparent in declining farm commodity prices and net incomes, growing stocks of farm products, or large Government costs for price supports, production restraints, and surplus disposal. Programs such as free markets, mandatory production controls, and action to increase exports and the mobility of farm resources have been advanced as possible solutions to problems of overproduction. A definitive analysis of ameliorative measures requires first an estimate of the problematic gap—the excess capacity in agriculture. This gap, defined in terms of the difference between the existing situation and some acceptable norm, is one measure of the magnitude of the problems faced.

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