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Abstract

In this study it is examined to see that if the government subsidy compensating for the additional cost of adopting best management practices (BMP) is equal to marginal net benefit, will farmers then try to adopt BMP at every level of TRQ and FMA without exhibiting concerns over the form of their production function and, also, will this then imply an ability on the part of the government to lighten importing and market restrictions on sugar.

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