Recursive aggregate demand and supply functions are used to simulate the ability of the farm sector to adjust during the 1970's to three policy alternatives. Different output demand elasticities and shifts in the supply and demand for farm output were assumed. Within reasonable bounds, agriculture could remain economically viable during the 1970's under policies diverting about 6 percent of potential output. An average of 6 percent was diverted from the market by Government productiqn centroI, storage, and subsidized exports in 1962-69. Returning to a free market immediately or by 1980 would place severe financial strain on the farm sector.


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