FARM PROGRAMS AND THE ENVIRONMENT: THE CASE FOR A LIMITED LAND PAYMENT
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The results of estimating reduced form supply and input demand functions suggest that farm programs have increased the area planted to corn and soybeans in the corn belt by about 12 percent, and increased fertilizer and chemical use per acre by about 18 percent. It is argued that a limited land payment (LLP) program would be neutral in its effect on the environment while helping to preserve family farms and rural communities.