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Abstract

During the last decade organizations of agricultural producers in the U.S. used a supply management practice, which included some form of production restrictions. The purpose of using it is to control the level of supply in order to ensure a fair level of returns to agricultural producers. A practice of using production restrictions has recently raised a lot of concerns among industry participants, lawyers and antitrust law enforcers in the U.S. The plaintiffs in a number of recent and on-going private antitrust lawsuits allege that agricultural production restrictions violate the Sherman Antitrust Act (1890). The article identifies and analyzes key legal and economic issues relevant to the nature and performance of agricultural supply management programs in the United States.

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