Donald J. Ricks

SHOULD IMPORTS FREE-RIDE OR HELP PAY-- DECISIONS ABOUT GENERIC PROMOTION PROGRAMS FOR AGRICULTURAL COMMODITIES

Many U.S. agricultural commodity industries are currently considering if and how they might implement a mandatory national generic promotion program. As U.S. industries consider how to finance these programs, one of the key decisions they face is the choice to include or exempt imported products from promotional assessment fees. Free-riders, unwilling riders, exclusion costs, economies of scale, market share, seasonality of production, storage constraints, and the role of government are reviewed within the context of this choice. The paper concludes that perceptions of fairness and ownership of decision processes, commonly held objectives, and effective communication links are key factors affecting decisions about the structures of generic commodity promotion programs.