On the contrary, this program provides a disincentive to farmers to update their processes and infrastructure. In the unregulated market, the profit and loss system allocates resources efficiently. However, when the government intervenes, as it does with this Qualified Beef tax credit, it mutes this “loss” signal. Since producers are consequently more insulated from risk, they have less of an incentive to respond to consumer demand, which removes the incentive for producers to target their operations efficiently.