Surplus Disposal and Supply Control

This article presents a simple model showing the relationship which exists between the surplus disposal program and a program of voluntary supply control of agricultural products. Disposal of surpluses raises problems of their valuation and costs. Production control presents other cost considerations. Values of and actions by the committees of the U.S. Congress which control the farm price and surplus export programs hold the key to the entire complex. It is doubtful that the two programs can be successfully wedded to the satisfaction of those who are interested in minimizing costs, because the existential nature of a surplus disposal program predisposes the relevant Congressional committees to rationalize an expanded production. The authors feel that food-aid-for-economic-development possibly should be pushed more than in the past; but even here the values held by Congress, and not the opinions of economists, will prevail.