The purpose of this study is to evaluate the impact that elimination of the quota on imports of beef in 1975 would have on the price and availability of beef to consumers and returns to producers in the United States. The results of the above analysis indicate that removal of the quota in 1975 would result in only a modest decline in retail meat prices with the price decline being much greater for low-grade than high-grade beef. Also, farm prices would fall which in turn would cause reductions in the domestic supply of beef. In addition, the lower farm prices would cause a shift in returns to those factors employed in the beef industry with the factors that are most inelastic in supply (and demand) being influenced to the greatest degree from the lower farm prices, e.g., real estate. The general conclusion reached from this study is that the quota affords only very modest protection or benefits to the U.S. beef producer.
