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This study establishes a U.S. crop model containing 14 commodities to analyze economic impacts of changes in the 2014 Farm Bill. The forecasting results under the alternative scenario are in line with theoretical expectations. The 2014 Farm Bill is forecasted to decrease expected net returns (ENRs) for producers. The expected changes are in favor of consumers at the cost of producer surplus. Without substantially affecting producers’ planting decision, the 2014 Farm Bill is forecasted to contribute to the Federal budget deficit reduction. |
