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Abstract

Since the substantial increases in energy prices and the realization that the United States economy is heavily dependent on foreign oil, there has been much debate on needed oil policies. These debates have centered primarily around two alternatives--price and non-price rationing. Absorption of these policy impacts are not necessarily uniform among firms. This study summarizes the impacts on high and low risk crop producers as a result of governmental non-price fuel allocation levels versus fuel price increases to conserve fuel. For high risk crop producers fuel price increases had little or no impact on their fuel usage levels. Fuel prices and non-price allocation strategies were both effective in cutting fuel usage by low risk producers.

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