anagement bodies. Of all US budget charges about 60% is necessary for realization of farmer income stabilization program and social - charitable support of needy farmers, almost 10% is distributed for the programs development village at the state and regional level, about 5% - for scientific researches and scientific service, 25% - for social and native-protective purposes. Thus, 3/4 of budget assignments allocated to US agriculture are spent for farm production regulation and 1/4 for social purposes.system of federal budget distribution allow to regulate farm production, through the prices, loans, credits and grants. The target program Stabilization Of the Incomes is subdivided into 3 large programs:" Prices and Incomes Support Crop Insurance. The Farm Credit the direct gratuitous payments from the federal budget are very important and have great influence over the farmers. The grants are powerful economic stimulus of involving farmers in realization of the state programs of farm regulation. The farmers, who carry out the taken obligations on realization of the state agrarian programs have right to get them, as well as loans. The grants use stimulates farmers to intensify farm production in case the sowing areas are reduced permanent income even due to the system of compensatory payments from the federal budget farmers are ensured in permanent income even if the situation is not favorable.US agricultural policies provide minimal and steady prices for agricultural products. The price support frequently results in huge surpluses of agricultural products , which authorities are compelled to buy and to keep prices from sharp fall. Agricultural price support, alongside with other policies inducing farmers to keep their land idle have also brought contributed in the prices paid by the American consumers to subsidize the farmers.American government agricultural policy supporting crop prices and farmers incomes has resulted in federal costs of more than 85 billions dollars in 1981-86 years. There is a complex of price support policies used by the government to benefit agricultural firms. The simplest of the programs is a price floor similar to the one discussed above for wages. Such a program has been used for many years to bolster the incomes of dairy farmers However, the impact of this type of price floor is somewhat different from the minimum wage program discussed above. In the case of an effective minimum wage the surplus of workers seeking work are not employed. However, in the case of an effective price floor established for dairy products such as milk, the government actually purchases the surplus and in that way uses taxpayers money to help increase the income of mill: producers When the price floor is above the equilibrium price of milk consumers also foot the bill to assist dairy farmers by paying higher prices for milk. Because milk is not storable for long periods, the surplus milk is usually converted to powder, cheese, or butter before being stored. In recent years government purchases of surplus milk have amounted to about 10% of total production. During the early 1980s the federal government spent over $ 2 billion annually to purchase surplus milk. To help reduce the program in 1 986 the government purchased dairy herds of farmers who agreed to stay out of the milk business for 5 years The dairy cows purchased through this program were then slaughtered The price support floors for milk were also reduced in 1986. However, the new program is not expected to eliminate the surplus.federal government also intervenes in the market for other agricultural commodities in various ways. The method most recently used to support the incomes of grain producers has been the imposition of target prices for crops. Target prices are price floors 10 sellers However unlike the price supports discussed above for milk target prices do not directly increase the market price paid by buyers. Instead, the entire quantity supplied by farmers at the target price is dumped on the market. The resulting price depends on the demand for the commodity. Farmers are then subsidized by the government through a payment for each bushel sold equal to the difference between the target price and the price paid by buyers .the beginning of each crop year the US Department of Agriculture announces the target prices for various crops and the eligibility requirements to participate the target price program. For example, in тисяча дев'ятсот вісімдесят сім the target price for wheat was $ 4,38 per bushel Typically, farmers are required to hold a certain percentage of the their acreage land to be eligible for the target price. In 1 987 farmers had to hold idle 25% of their land to gain the right to the target price.government does not buy grain surplus, on the target price instead all produced graine amount is offered for sale at the market.are clearly better under the target price program than they would be under a...
