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Use of Land Reserves to Control Agricultural Production

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  • Ericksen, Milton

Abstract

A land reserve program is one instrument for achieving pro- duction adjustment. But the results of past programs have been less than expected because of "slippage." This term refers to the proportion of acreage put into a reserve for which there is no corresponding reduction in production of the crops being controlled. Slippage coefficients in land reserve programs during 1956-73 usually ranged between 0.4 and 0.5, implying a program efficiency rate of only 50-60 percent in reducing acreage. Acreage put into land reserve also tends to be less productive than acreage being cropped, thus further reducing program production abatement. A land reserve program which would link base acreage to the previous year's crop acreage is discussed. Land reserve acres would be required to come from the land actually used for production of the controlled crop in the previous year. One problem of such a plan would be that income supplements tied to annually updated bases might be an incentive for producers not to participate in the program for a year to establish a large base. The probability of this response would be decreased if income supplements were variable annually.

Suggested Citation

  • Ericksen, Milton, 1976. "Use of Land Reserves to Control Agricultural Production," Miscellaneous Publications 329880, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uersmp:329880
    DOI: 10.22004/ag.econ.329880
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    References listed on IDEAS

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    1. Garst, Gail D. & Miller, Thomas A., 1975. "Impact of the Set-Aside Program on the U.S. Wheat Acreages," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 27(2), pages 1-8, April.
    2. Weisgerber, P., 1969. "Productivity of Diverted Cropland," Miscellaneous Publications 321941, United States Department of Agriculture, Economic Research Service.
    3. Frey, H. Thomas, 1973. "Major Uses of Land in the United States, Summary for 1969," Agricultural Economic Reports 305571, United States Department of Agriculture, Economic Research Service.
    4. J. P. Houck & M. E. Ryan, 1972. "Supply Analysis for Corn in the United States: The Impact of Changing Government Programs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 54(2), pages 184-191.
    5. Houck, James P. & Ryan, Mary E., 1972. "Supply Analysis For Corn In The United States: The Impact Of Changing Government Programs," Staff Papers 13554, University of Minnesota, Department of Applied Economics.
    6. Sharples, Jerry A. & Walker, Rodney L., 1974. "Shifts in Cropland Use in the North Central Region," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 26(4), pages 1-6, October.
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    Cited by:

    1. Boggess, William Glenn, 1979. "Development and application of an interregional separable programming model of United States agriculture in 1985," ISU General Staff Papers 197901010800008192, Iowa State University, Department of Economics.
    2. Love, H. Alan & Foster, William E., 1990. "Commodity Program Slippage Rates For Corn And Wheat," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 15(2), pages 1-10, December.
    3. Dvoskin, Dan, 1988. "Excess Capacity in U.S. Agriculture: An Economic Approach to Measurement," Agricultural Economic Reports 308036, United States Department of Agriculture, Economic Research Service.
    4. Langley, James A. & Price, J. Michael, 1985. "Implications of Alternative Moving Average Loan Rates," Agricultural Economic Reports 307994, United States Department of Agriculture, Economic Research Service.
    5. Norton, Nancy Anders, 1986. "The Effect Of Acreage Reduction Programs On The Production Of Corn, Wheat, And Cotton: A Profit Function Approach," 1986 Annual Meeting, July 27-30, Reno, Nevada 278421, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Teigen, Lloyd D., 1988. "Agricultural Policy, Technology Adoption, and Farm Structure," Staff Reports 278118, United States Department of Agriculture, Economic Research Service.

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