AGEC 429 EXAM 2 | QUESTIONS AND ANSWERS | WITH
100% SOLVED SOLUTIONS.
In the 1990 Farm Bill, the carrot and stick approach were used. What were the
carrot and stick that were used and why were they used? Answer - Carrot: TP +
Loan (TP, DP)
Stick: Acreage Reduction Program (ARP)
These factors were used because the carrot aspect (TP, DP) are incentive
factors for farmers to join the program. The stick factor (ARP) is used as almost
a punishment and supply control.
Texas A&M is a good example of the land grant mission. Describe the
mission/components of a land grant university and list the legislation that
enables this mission. Answer - Teaching- Morrill Act: Donated public lands to
several states to provide colleges for Ag & mechanics
Research- Hatch Act established ag experiment stations
Extension- Smith-Lever Act: set up extension system to communicate new
technologies
*3 legged stool of land grant mission
3 legged stool of land grant mission Answer - Morrill Act-Teaching
, Hatch Act- Research
Smith-Lever Act- Extension
For the payments in the three farm bills below describe whether the payments
were coupled or decoupled and if coupled what were they coupled to? Answer
- 1990 Farm Bill Marketing Loan gains: Coupled- price and production
2002 Farm Bill direct payments: Decoupled from production & not prices
2014 Farm Bill PLC payments: Decoupled from production not prices (along
with ARC)
What were the primary reasons the 1996 farm bill was called a watershed
change in agricultural policy? Why is it considered both a success and failure?
Answer - Freedom to Farm - full planting flexibility
Failure:
Prices dropped too low from exporting
The 2008 Farm Bill gave producers a choice of farm programs. Name the
options. If a producer was extremely risk adverse which option would they
choose and why? Answer - ACRE AND DCP
Risk adverse producers would pick DCP over ACRE. With DCP farmers have
more guaranteed money support with their crops. Risk adverse producers are
more comfortable with guaranteed support rather than possible losses.
What did Dr. Sumner do wrong in his dealings with the Brazilian cotton case?
Why did other commodity groups become concerned when cotton lost the
case? Answer - Legally wrong - did not fill out the paperwork for the university
before consulting for law firm for Brazil
100% SOLVED SOLUTIONS.
In the 1990 Farm Bill, the carrot and stick approach were used. What were the
carrot and stick that were used and why were they used? Answer - Carrot: TP +
Loan (TP, DP)
Stick: Acreage Reduction Program (ARP)
These factors were used because the carrot aspect (TP, DP) are incentive
factors for farmers to join the program. The stick factor (ARP) is used as almost
a punishment and supply control.
Texas A&M is a good example of the land grant mission. Describe the
mission/components of a land grant university and list the legislation that
enables this mission. Answer - Teaching- Morrill Act: Donated public lands to
several states to provide colleges for Ag & mechanics
Research- Hatch Act established ag experiment stations
Extension- Smith-Lever Act: set up extension system to communicate new
technologies
*3 legged stool of land grant mission
3 legged stool of land grant mission Answer - Morrill Act-Teaching
, Hatch Act- Research
Smith-Lever Act- Extension
For the payments in the three farm bills below describe whether the payments
were coupled or decoupled and if coupled what were they coupled to? Answer
- 1990 Farm Bill Marketing Loan gains: Coupled- price and production
2002 Farm Bill direct payments: Decoupled from production & not prices
2014 Farm Bill PLC payments: Decoupled from production not prices (along
with ARC)
What were the primary reasons the 1996 farm bill was called a watershed
change in agricultural policy? Why is it considered both a success and failure?
Answer - Freedom to Farm - full planting flexibility
Failure:
Prices dropped too low from exporting
The 2008 Farm Bill gave producers a choice of farm programs. Name the
options. If a producer was extremely risk adverse which option would they
choose and why? Answer - ACRE AND DCP
Risk adverse producers would pick DCP over ACRE. With DCP farmers have
more guaranteed money support with their crops. Risk adverse producers are
more comfortable with guaranteed support rather than possible losses.
What did Dr. Sumner do wrong in his dealings with the Brazilian cotton case?
Why did other commodity groups become concerned when cotton lost the
case? Answer - Legally wrong - did not fill out the paperwork for the university
before consulting for law firm for Brazil
