EFFECTS OF THE CHANGE FROM SUPPORT PRICE TO PROCAMPO ON PRODUCER PRICES, EXCLUDING IMPORTS EFFECT

Abstract

This paper studied the cost effect induced by the change in agriculture policy, from price supports to direct payment to farmers on the bundle composed by corn, bean, rice, wheat and sorghum; this analysis was done by means of four index prices while the imports depressing price effect is removed. Once the support price policy ended, results showed that free from the imports effect, the chosen bundle cost decreased by 56.38 % under PROCAMPO.