Commodity programs for agriculture are intended to provide farm income stability and maintain desirable efficiencies that derive from market based outcomes. A measure of economic efficiency is producer response to market signals. This research measures acreage response of Arkansas field crops that are associated with changes in the U.S. stocks-to-use ratio. Results of this analysis indicate that stocks-to-use is a significant determinant of acreage decisions in Arkansas. The results of the current research indicate that agricultural policies historically establishing price floors have not undermined market response to supply and demand conditions.


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