Minimum prices and stabilization of agricultural prices

This work analyses the minimum price policy in Brazil. Some measures of price spread are performed in monthly prices time-series to estimate the impact of the policy on the series of rice and corn. The results suggest that changes in the price policy would not modify the historical performance of the price time-series for these crops, except the case of the intervention prices that has worked since 1988.

KEYWORDS:
Minimum price; agriculture; agricultural finance