Two of the major objectives of UK agricultural policy are the need to save imports and to effect a transfer of income to the farm sector. The paper presents a way of comparing the cost by alternative means of price support. The wheat market is used as an example. The deficiency payment policy is seen to be more efficient as a means of income transfer than a variable levy‐threshold price scheme or a minimum import price programme, though the main difference is in the incidence of the burden. The minimum import price is inefficient relative to the other two policies if the objective is to save foreign‐exchange. When the effects on markets using wheat us an input item are considered, the deficiency payment policy becomes far superior to the others in terms of cost. It is pointed out that a single policy cannot achieve both objectives satisfactorily, and a possible solution using a mixed policy is suggested. Copyright © 1969, Wiley Blackwell. All rights reserved
