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Abstract

An econometric analysis of the marketing loan program for rice was used to project the performance of the U.S. rice industry through 1990/1991. Results indicate that the marketing loan provision should lead to increased exports, reduced stocks, and moderate price enhancement. A review of current cost of production estimates across the U.S. and in Thailand suggest that some form of government program will be required beyond 1990 if U.S. rice producers are to receive returns at or above the variable cost of production.

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