ABSTRACT
Price enhancement for income support was the primary goal of US farm programs for most years from 1933 to 1985. Price enhancement was achieved by setting floor prices, diverting acres from production, and accumulating commodities in storage. The lower level of US stocks may allow greater volatility in world grain supplies and prices in response to yield shocks. Programs considered include: unilateral buffer programs such as the US nonrecourse loan and Farmer Owned Reserve; multilateral grain cartels and commodity agreements; international buffer stock schemes; a multilateral sharing of responsibility; and country managed yield buffers. The International Wheat Agreements were multilateral grain cartels designed to stabilize the quantity and price of wheat in international trade. Food security becomes a primary concern as the very poor find they cannot obtain sufficient food to prevent starvation. Political stability of governments becomes a problem as consumers and producers demand action by governments to bring about stability in food prices.
