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Abstract

Recent changes in how domestic agricultural support is provided poses new challenges for database construction and modeling. Different views have emerged on how best to treat domestic support. The assumptions regarding direct payments are captured in subsidies to land. This paper used two databases with different treatment for land-based payments and conducts identical experiments with each. How these rates vary across sectors has important welfare implications. The current version of the database produces some questionable outcomes for U.S. production impacts.

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