The problem is as follows:
The largest portion of the US Farm Bill is usually nutrition assistance programs including the Supplemental Nutrition Assistance Program (SNAP) and Women’s, Infants, and Children (WIC). In the 2013 fiscal year, $76.4 billion in food assistance was distributed to 47.6 million Americans through SNAP. This represents about 12.5% of the U.S. population and about $135 per person per month. Aid can be used for prepackaged edible foods, not simply food staples (bread, beans, fruit, vegetables, rice, etc.)
WIC was used by nearly 9 million people in 2013 and cost close to $7 billion or about $45 per person per month. WIC funds are more limited in what they can purchase. Usually fruits, vegetables, milk, cheese, bread, peanut butter and other more healthy foods are all that is available for WIC. One notable omission is white potatoes. They cannot be purchased using WIC vouchers as of 2014.
A bill is being prepared for Congress to consider that would limit the types of products that could be bought via the SNAP program to food staples and would add white potatoes to WIC. For example, families will not be able to buy soft drinks and candy with the SNAP program anymore. This bill would have impacts on several different economic variables.
You are an intern for a U.S. Congressman. Prepare a 2-3 page memo with graphs and references for your Congressman that explains in economic terms the impact of this bill on the variables listed below. Using economic theory (graphs and equations) and short sentences explain the likely impacts in the short and long run on:
Price and quantity of rice sold in the U.S.
Price and quantity of sugar sold in the U.S.
Price and quantity of wheat exported out of the U.S.
Price and quantity of white potatoes sold in the U.S.
While you are doing this analysis, find out what Congressional District your hometown is in, who your representative is, and what the principle agricultural commodities are in your district. Address this memo to your representative. You will use the ag commodity information in later papers.
For each commodity, you will need to answer six questions in the paragraphs.
Why did the first shift occur?
What are the effects?
Why did the second shift occur?
What are the effects?
What are the total effects?
Are the producers better or worse off and why?
Notes:
A minimum of 750 words is to be written stressing the important points using economic theory and graphs to demonstrate important supply and demand schedules.
Use Times New Roman, 10 point font, double space the body and single space the heading.
There should be an introductory paragraph with a primary argument or clear thesis statement.
Explain each specific point in paragraph form with reference to the attached graph to better develop an explanation (graphs are attached as an appendix).
The memorandum should end with a concluding paragraph that gathers your thoughts and declares the final point concerning the issue.
Be sure and check your grammar and spelling. It is acceptable to add handwritten edits to your final version before submitting it.
Be sure and distinctly label all parts of your graphs. Have a complete graph by adding arrows to illustrate direction of change associated with the economic phenomena you address in your memorandum. Label your graphs (ie, Figure 1, Figure 2, etc.) and be specific in referring to them. This will aid your reader in understanding the assessment of the situation. Your paper is not complete without accompanying graphs. If you are having trouble with the graphs, ask the TA’s or Dr. Menzies.
Your graphs may be hand-drawn if they are neatly done.
As with previous assignments, if you use any other persons work you must cite that information and include it on a reference page.
