1. Major Points
P. Berck 2007

2. Examples of 4 types

3. Give Away
homestead act
Taylor grazing Act
railroad land grants

4. price increase target price deficiency payment loan rate
remove land from production
conservation reserve and earlier set-asides
draw diagram and explain target-price and loan. show how conservation reserve “helps” with each of these two policies.

5. build infrastructure reclamation act of 1902: dams
railroad land grants and incentive payments to build track—transcontinental railroad
(nice book: railroad express is history of same.)
rural electrification

6. Create Financial Institutions
land bank
loans to farmers for land purchase
mortgages used as backing for bonds sold on Wall Street
made much more money available for development of the farm sector than could ever be generated in local banks
(now widely copied in the home mortgage market by both government and private banks)

7. Ethanol Renewable Fuels Act
Must use ethanol (or other renewable fuel) in motor fuel
51c per gallon subsidy to blend ethanol into gasoline
Therefore increased demand for corn
Therefore higher prices and less need for price supports and other programs
Therefore no nonconservation need for conservation reserve

8. Aside
The US is not a “potted plant.” It actively intervened in the development process.