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Vincennes University AGBS 434 Chapter 7 TRUE/FALSE QUESTIONS 1)The most important long-run consequence of U

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Vincennes University

AGBS 434

Chapter 7

TRUE/FALSE QUESTIONS

1)The most important long-run consequence of U.S. farm policies is the survival of family farms.

 

2. Target price (counter-cyclical) payments are directly tied to current production

 

 

3. Farm policy has been a failure because the number of farmers has fallen from roughly 7 million when the programs began to 2.1 million today.

 

4. Multifunctionality is a goal of U.S. farm programs

 

5. Direct payments support farmers’ income, but not the market price

 

 

6. The conservation reserve program (CRP) decreases land values because it takes away the farmer’s right to produce on it.

 

 

7. Only half of the farmers, or those who consider themselves to be farmers, get government payments.

 

 

8. Voluntary production control payments are based on producer loyalty for participation.

 

9. Farm prices and income would be more stable under free market conditions

 

10. Marketing loan payments (LDPs) are directly tied to current production.

 

 

11. The benefits of acreage allotments and marketing quotas are capitalized into land values or into the value of the transferable quota.

 

12. When returns fall, resources quickly move out of agriculture

 

 

13. Marketing loans support income.

 

14. Farming would be more efficient under free market conditions.

 

15. In the non recourse loan, the loan rate is the interest rate on the loan.

 

16. The most vulnerable farms are those having gross incomes of $100,000 to $250,000

 

17. The benefits of a transferable marketing quota are capitalized into the value of land

 

18. The non recourse loan is a guaranteed floor price

 

19. Payments under the marketing loan program are decoupled.

 

20. Eliminating the peanut program destroyed asset values

 

21. Farm policy tends to be bipartisan.

 

 

22. If price supports are set above marketing clearing levels, exports decline

23. It is difficult for any country to compete in a free market if other major competitors subsidize their farmers

 

24. In the presence of crop insurance, disaster payments are counterproductive

 

25. Decoupled payments do not increase asset values

 

26. The marketing loan does not expand production

 

27. Society can be expected to make greater demands on private goods than on public goods