Impact of Farmer-Owned Wheat Reserve on Total Wheat Stocks and Price

摘要

An economic model of ending stock demand is presented and estimated. The model is used to assess the impacts of the farmer-owned wheat reserve for 1977/78 and 1978/79. The results indicate that the farmer-owned wheat reserve provided substantial additional wheat demand and therefore increased wheat prices and producer revenue. The estimation results suggest that the procedures employed in this study may be appropriate for other grains and more complete analysis of the costs and benefits of the farmer-owned reserve.