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Abstract

A buffer fund scheme has been proposed as a means of stabilizing producer revenue in the Australian beef industry. In this paper the economic consequences of such a policy are evaluated and the conditions under which the scheme would be successful in achieving its principal aim are indicated. In addition to effects on the stability of producer revenue, consequences of the policy for total producer revenue and its distribution among producers are indicated. Finally, the effects on consumers, at home and abroad, and taxpayers are estimated.

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