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Abstract

Enacted to provide more competitive pricing of U.S. farm goods in foreign and domestic markets and to reduce surplus stocks of grain and dairy products, the Food Security Act of 1985 affects consumers in several ways. This report compares these effects with what might have happened if 1981 farm legislation had remained in effect. Consumers will he able to buy more food with their dollars under the 1985 legislation. The implicit tax burden associated with financing Federal farm programs is reduced for low- and moderate-income people, and shifted to persons in higher tax brackets. Eligibility requirements for food assistance programs are broadened and benefits are increased, enabling wider participation by the needy.

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