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Predictable Flows of Income

Vigorous competition for predictable flows of income recommends that federal agricultural subsidies will tend to be rapidly: (1) spent because most farmers lack sufficient budgeting skills. (2) capitalized within higher prices for farm land. (3) slashed when pressure mounts to cut the federal deficit. (4) converted in portfolios of stocks and bonds by farmers. (5) absorbed by rising costs for agricultural labor.

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