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Experiences with Recent Price Stabilization Programs for Agriculture

The stabilization of farm prices and incomes has been a goal of all farm legislation dating back to the establishment of the Farm Board in 1929. After the Farm Board concept failed in the wake of the great crash of 1929, price stabilization turned more and more toward price supports with prices set above market equilibrium. To absorb the differential quantities that arose, loan and storage programs were established for major commodities. Stocks of accumulated grain were used in times of war or world grain production shortfalls to even out the flow of food to consumers