The concept of a marketing margin
Mention caveat re producer surplus. Assumes that producer gets the rents. But we can
show that the rent will accrue to that factor in most inelastic supply, which may be land or milk quota. As long
as the farmer is also the land or quota owner, this distinction is irrelevant. However, as soon as there is a market
for land or quota, then we see price support being capitalised into the value of the land or quota. In these conditions,
the main beneficiaries of price support are landowners (who sell or rent their land) and exiting farmers (who sell
their quota) rather than the working farmer.