Impact of Proposed Changes in Commodity Programs on Farmers and Agricultural Business in the Northeast

Extract

The proposed changes in commodity programs which are now being considered by Congress will not have a major impact on the incomes of farmers in the Northeast nor on sales of firms supplying inputs or services to farmers. This conclusion is based on the assumption that the principal changes finally adopted will be to raise target prices for wheat, and to a lesser degree for corn, and to encourage on-farm storage of these commodities. Neither commodity, of course, is an important source of farm income in most of the states represented at this meeting. One of the consequences of raising target prices, however, will be to increase the cost of farm programs. Substantial government payments are likely to be made once again to producers of wheat and perhaps to those growing corn and cotton as well.