The name is absent

What is the nature of the interaction of the
world market environment, domestic policy and
producer responsiveness?

I agree with White’s list of market charac-
teristics which seriously aifect response to the
programs. Imperfect markets, volatility and flu-
idity are significant dimensions to the question
of whether world agricultural markets function
in an appropriate framework of price discovery.
However, the question of the meaning and na-
ture of price signals in international agricultural
markets is also significant. The magnitude and
extensive use of price distortions generate sig-
nificant data and informational problems for
analysis attempting to evaluate this question.

White’s discussion of the implications of in-
ternational markets for agricultural policy is
helpful. I agree that the key to easing constraints
on effective policy implementation requires less
fixed interference. But it does not follow that
no or minimum interference is the best solution.

He has contrasted the objectives of stability
of domestic prices and incomes with stability
of participation in world markets. This is mis-
leading, but it does get us on track to recog-
nizing that the basic issue is determining what
is an acceptable income and stability objective.
Establishing this objective, along with a less
rigidly set safety net, can provide program man-
agers the flexibility to determine the extent and
conditions by which the U.S. should participate
in international markets.

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