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Appendix A Case Study Answers

Decent Essays

INTRODUCTORY SUMMARY If Congress proceeds with legislative revision to SNAP and WIC will lead to economic change in the agricultural production sector in the U.S. economy. Legislative changes like SNAP recipients no longer being able to purchase items like soft drinks and prepackaged food would be substituted for food staples like rice and wheat. While the WIC program would be adding white potatoes to the list of healthier foods options. Because of these changes in SNAP Legislation will allow rice farmers to be better off, sugar farmers to be worst off, wheat farmers to be better off, and white potatoes farmers to be worst off because increased demand for food staples and decrease in demand in sugary products since they are no longer eligible …show more content…

In the short run both supply and demand of wheat exports will decrease which cause an increase of price. Since wheat will have a greater demand in the U.S. as a food staple. In the long run supply and demand decrease. To fulfill the demand in the U.S. needs for the staple.
EFFECTS ON WHITE POTATOES
Figure 4 in Appendix A demonstrates the supply and demand of white potatoes. In the short run price, demand and supply with all increase because of the commodity being added to the program. While in the long run both supply and demand will increase. Price will decrease because consumers will keep demand high enough to have equilibrium at a lower price than in the short run. By adding the proposed changes white potato farmers will be better off.
CONCLUSION
The proposed changes to the bill should pass since both rice and wheat commodities are supported by the changes. While wheat exports and sugar are negatively affected by the changes. Wheat exports would decrease but wheat would be staying in the U.S. instead of a foreign country. Sugar demand also decrease because of the programs elimination of support. Overall, the domestic demand increase for the food staples of rice, wheat, and white potatoes and focuses on eliminating excessive sugar consumption leading to a healthier

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