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Abstract

Farmers sponsor generic advertising campaigns to expand the total market for their commodity. Generic advertising promotes a type of food, such as milk, beef, or orange juice, rather than a specific company's brand. Sales promotions may help increase consumer demand and raise—or at least stabilize—commodity prices. If producers can improve their domestic markets through generic advertising, some pressure on price supports and other traditional farm policy tools could be relieved. The growth in promotions has spurred public debate about the costs and benefits for producers, and the effect on food budgets and choices for consumers. Do producers gain from advertising, and if so, do consumers pay the price in their food bills?

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