Number: RL34019
Title: Eliminating the Planting Restrictions on Fruits and Vegetables in the Farm Commodity Programs
Authors: Renée Johnson and Jim Monke, Resources, Science, and Industry Division 
Abstract: This report summarizes and examines five academic and industry studies on the economic effects of removing the fruit and vegetable planting restrictions. These studies indicate that lifting the planting restriction could have an economic effect on certain crops within certain producing areas. However, differences in approach and scope (e.g., regional versus national; plantings of permanent, perennial crops versus easily rotated, annual crops) complicate a direct comparison across all five studies, and make it difficult to generalize about the possible economic effects of lifting the planting restriction. Only two of the studies provide estimates of revenue losses to existing fruit and vegetable growers (ranging from about $1.7 billion to $4.0 billion in the first year of lifting the current restriction). The other three studies do not make quantitative estimates of the impacts, but indicate that adverse effects of removing the restriction likely would be small relative to the overall industry, although there could be larger impacts on individual producers, commodities, and regions.
Pages: 15
Date: May 25, 2007