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Abstract

System of input demand functions is estimated to examine the impact of farm program payments on farm economic structure. Influence of farm program payments on input resource use for the time periods corresponding to the thirteen farm bills in effect since 1938 is also examined. Empirical application to Nebraska agriculture sector for the period 1936-2004 indicate positive impact of farm program payments on farm real estate, breeding livestock and other inputs. Negative influence of farm program payment on the use of farm equipment, farm labor, farm inputs, chemicals and energy was observed during the same period.

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