ABSTRACT
MACROECONOMIC POLICIES and AGRICULTURE Macroeconomic policies have a strong influence on output prices, factor prices, marketing margins, and, hence, on incentives for agricultural producers, consumers, and marketing agents. Foreign exchange rates, for example, affect export and import prices and quantities and, thus, output and input prices. Interest rates determine the cost of investments in machinery and equipment and, when combined with wage
rates, the capital intensity of production. Interest rates also influence the cost of storage.
