A SIMPLE ANALYSIS OF ACREAGE RESPONSE TO SOME AGRICULTURAL PROGRAMS

The purpose of this paper is twofold: (a) To analyze the effect of some common agricultural programs on the planted area of a crop. This will be done with the framework of a simple model mostly by graphical methods. (b) To comment on an estimative procedure by which a support price, which is linked to acreage restrictions, is transformed to an "effective support price." Three programs will be analyzed, namely, unlinked support price, link support price and diversion payment.