Adjustment Costs of Trade Liberalization: Dairy and Meat Industries in Utah

Basudeb Biswas, Utah State University
Tyler Bowles, Utah State University

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The United States is an efficient and low-cost agricultural producer demonstrated by huge domestic agricultural surpluses and exports. This is a partial reason however for the crisis now facing American agriculture: we can produce more agricultural products than can be sold at prices which provide a reasonable profit (Johnson). While the problem is quite clear, the solution is not.