Presented at the American Agricultural Economics Association Annual Meeting: Long Beach, California, July 23, 2006, pages 1-22. Copyright 2006 by Sean P. Hurley and Jay E. Noel. All rights reserved. Readers may make verbatim copies of this document for non commercial purposes by any means, provided that this copyright notice appears on all such copies.
Regulations can have many different effects on producers—both positive and negative. They can positively affect producers by improving marketability of the crop and increasing worker’s safety which would provide benefits to producers in the form of higher prices and/or potential cost savings. They can also negatively affect producers by increasing the cost of production by mandating that producers use more costly or less efficacious inputs, causing negative effects to the producers’ bottom-line. Regulations can also have a negative effect on producers by increasing non-cash costs related to management time.
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