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Abstract

This report examines the agricultural implications of three policy options for Federal deregulation of natural gas prices for the period 1983-90: a phased-in price decontrol (a modification of the Natural Gas Policy Act of 1978 (NGPA)); 2-year freeze on gas prices; and accelerated decontrol of wellhead gas prices. Differences among the three policies in crop and livestock production, variable costs of production, prices received by farmers, and net farm income are minor. Because gas prices under the modified NGPA and price freeze policies are lower, net farm income and Government payments would be higher than under accelerated decontrol

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