Many agricultural producers face cash price distributions that are effectively truncated at a lower limit through participation in farm programs designed to support farm prices and incomes. For example, the 1996 Federal Agricultural Improvement Act (FAIR) makes many producers eligible to obtain...

Only a small percentage of well-capitalized smallholders are able to sell maize to the Food Reserve Agency (FRA) and take advantage of the maize price support. For example, in the 2007/08 marketing year, only 10% of smallholders sold maize to the FRA and these households had larger landholdings,...