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Some Implications of the EEC's Agricultural Price Policy

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  • Donald J. Epp

Abstract

This article indicates elements of the Common Agricultural Policy of the European Economic Community that may result in substantial changes in the future. Regional price indexes are developed for several grain and livestock commodities and projected to 1970 and 1975. By combining these projections with the results of an EEC survey of family farm incomes, this article shows that the projected price changes will favor the farmers with the highest incomes. Also, the operation of the Agricultural Fund causes a transfer of foreign exchange from member countries with agricultural net import balances to member countries with agricultural net export balances. Raising the internal prices of imported and exported commodities in order to establish a common price for the EEC has further increased the foreign exchange transfers.

Suggested Citation

  • Donald J. Epp, 1969. "Some Implications of the EEC's Agricultural Price Policy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 51(2), pages 279-288.
    • Handle: RePEc:oup:ajagec:v:51:y:1969:i:2:p:279-288.
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    File URL: http://hdl.handle.net/10.2307/1237579
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