Discriminatory Pricing Under a U.S. Producer Board

摘要

This study simulates the consequences of replacing the competitive market for wheat and feed grains in the United States with a producer marketing board which practices price discrimination. A U.S. producer board for wheat and feed grains would increase prices in the nonfeed and export markets by reducing sales in those markets. Further, board carry-out stocks would rise, while prices in nonboard markets would fall to the loan rate. U.S. growers would receive windfall rents, most of which would be income transfers from U.S. consumers. The United States would receive a monopoly rent from foreign consumers. The board policy would support foreign producers through windfall gains. Finally, the board's operation would reduce the variability in grain prices.