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Abstract

There are many programs in existence today which have the intent of influencing the supply and demand for agricultural products, and reducing price and income uncertainty. Price support programs originated in 1933 with the passage of the Agricultural Adjustment Act which at that time was aimed at restoring the purchasing power of agricultural commodities. This goal became known as parity, where the term parity comprehends an equality of exchange relationship between agriculture and industry or between persons living on farms and persons not living on farms (Rasmussen and Baker).

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