Dynamic Models for Stabilizing Food Prices

Multiyear dynamic spatial models of the U.S. grain, oilseed, and livestock (GOL) economy show how to stabilize prices in this part of the world food economy. The standard GOL model can be operated at modest cost, well within the limits of previous price support and storage programmes operated by the U.S. government. Appropriate application of the model and its derivatives will stabilize the U.S. GOL economy within a relatively narrow price band, and this will help to stabilize prices in other trading countries as well.