Commodity Programs: Impact of Support Provisions on Selected Commodity Prices
RCED-97-45
Published: Feb 21, 1997. Publicly Released: Feb 21, 1997.
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Highlights
Pursuant to a congressional request, GAO reviewed the impact of support provisions on selected commodity prices, focusing on: (1) whether marketing loan provisions prevent loan rates from acting as price floors and whether they allow U.S. prices to fall to levels closer to world prices; (2) the effect lower loan rates would have on the relationship between U.S. and world prices; (3) the affect of a lower loan rate on step 2 payments for cotton exports and the impact of recent changes in timing of payments on the program's effectiveness; and (4) the steps that could be taken to make the peanut and sugar programs more market-oriented.
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Agricultural policiesCommodity marketingCompetitionExportingFarm creditInternational tradeLoan interest ratesLoan repaymentsPrice regulationPrice supports