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But tax policy was never intended to function as a price support.
A 2010 audit said the company still did not provide effective price support.
The new price support program will help, he said.
Phase out all farm price supports over the next four years.
First, market prices are kept at competitive world levels through a price support loan system.
To achieve that, the Government first sets a level for price supports.
Price support and resistance levels are key trading tools in any market.
The tobacco price supports probably cannot be sustained in any case.
Price support should be replaced by increased direct aid for those farmers who really need help.
However, the problem of low price support for rice still continues to affect the production sector.
Some recent empirical work on options prices supports this model.
But price supports might be more harmful in the long run, because they could fuel inflation.
On the economic side, there is no doubt that price support must be reduced to nearer world levels.
Last week a conference agreement was reached that would cut price support programs by $13 billion.
The House proposal could eliminate 30 to 45 percent of a farmer's land from eligibility in the price support program by 1995.
Although European price supports have been trimmed gradually in recent years, they are still high by world standards.
The 1996 changes to the peanut price support program were designed to ensure that it also operated at no cost.
"We were sold on the health benefit of quotas and price supports.
Subsidies for domestic programs, like crop price supports, will also be reduced.
A switch from price support to income support comes dear.
Domestic farm price supports would become law in 1933.
Unlike the price support programs for other crops, the sugar program is operated at no cost to the Treasury.
The conferees said they met the demand by agreeing to change the structure of the price support programs.
He or she must understand the greenhouse effect, mobile missiles and milk price supports.
But in 1986 a new law designed to protect exports sharply reduced price supports.