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How Coupled Are Decoupled Farm Payments? A Review of the Evidence

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  • Bhaskar, Arathi
  • Beghin, John C.

Abstract

This survey paper explores the literature on decoupling of farm programs that has emerged in the last 10 years. The paper identifies and assesses the various channels of potential coupling of decoupled farm payments and provides a taxonomy of coupling mechanisms found in theoretical and empirical papers. Coupling of decoupled payments is pervasive but effects when measurable are small, with the exception of the impact on land values. The paper points to unresolved issues on potential coupling mechanisms for further research.

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Bibliographic Info

Article provided by Western Agricultural Economics Association in its journal Journal of Agricultural and Resource Economics.

Volume (Year): 34 (2009)
Issue (Month): 1 (April)
Pages:

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Handle: RePEc:ags:jlaare:50077

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Web page: http://waeaonline.org/
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Keywords: agricultural policy; decoupled; decoupling; farm payment programs; program subsidies; support; Agricultural and Food Policy; Agricultural Finance;

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References

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  16. Teresa Serra & David Zilberman & Barry K. Goodwin & Keijo Hyvonen, 2005. "Replacement of Agricultural Price Supports by Area Payments in the European Union and the Effects on Pesticide Use," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(4), pages 870-884.
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Citations

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Cited by:
  1. Renwick, Alan W. & Jansson, Torbjorn & Thomson, Steven & Revoredo-Giha, Cesar & Barnes, Andrew P., 2011. "The Economic Impact of allowing Partial Decoupling under the 2003 Common Agricultural Policy reforms on Scottish agriculture," Working Papers 131461, Scotland's Rural College (formerly Scottish Agricultural College), Land Economy & Environment Research Group.
  2. Niemi, Jyrki S. & Kettunen, Lauri, 2011. "An analysis of the potential CAP changes: A Finnish case study," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114612, European Association of Agricultural Economists.
  3. Bhaskar, Arathi & Beghin, John C., 2008. "Decoupled farm payments and the Role of Base Updating under uncertainty," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6339, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  4. Mitchell, Paul D. & Rejesus, Roderick M. & Coble, Keith H. & Knight, Thomas O., 2010. "A Real Options Framework for Analyzing Program Participation as Human Capital Investments: The Case of the Average Crop Revenue Election (ACRE) Program," Staff Paper Series 547, University of Wisconsin, Agricultural and Applied Economics.
  5. Bhaskar, Arathi & Beghin, John C., 2007. "Decoupled Farm Payments and the Role of Base Acreage and Yield Updating Under Uncertainty," Staff General Research Papers 12851, Iowa State University, Department of Economics.
  6. Nagler, Amy M. & Menkhaus, Dale J. & Bastian, Christopher T. & Ehmke, Mariah D. & Coatney, Kalyn T., 2013. "Subsidy Incidence in Factor Markets: An Experimental Approach," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 45(01), February.
  7. Femenia, Fabienne & Gohin, Alexandre & Carpentier, Alain, 2008. "The decoupling of farm programs: Revisiting the wealth effect," 108th Seminar, February 8-9, 2008, Warsaw, Poland 48107, European Association of Agricultural Economists.
  8. Elisa Gatto & Alba Marino & Guido Signorino, 2013. "Biodiversity and risk management in agriculture:what do we learn from CAP reforms? A farm-level analysis," ERSA conference papers ersa13p805, European Regional Science Association.
  9. Jones, Carol Adaire & Nickerson, Cynthia J. & Heisey, Paul W., 2012. "New Uses of Old Tools: An Assessment of Current and Potential Agricultural Greenhouse Gas Mitigation with Sector-based Policies," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124735, Agricultural and Applied Economics Association.
  10. Ricome, Aymeric & Chaib, Karim & Ridier, Aude & Kephaliacos, Charilaos & Carpy-Goulard, Francoise, 2012. "The role of cash crop marketing contracts in the adoption of low-input practices in the presence of risk and income supports," 126th Seminar, June 27-29, 2012, Capri, Italy 126222, European Association of Agricultural Economists.
  11. Howley, Peter & Breen, James & Donoghue, Cathal O. & Hennessy, Thia, 2012. "Does the single farm payment affect farmers’ behaviour? A macro and micro analysis," International Journal of Agricultural Management, Institute of Agricultural Management;International Farm Management Association, vol. 2(1), October.
  12. Robert Finger & Niklaus Lehmann, 2012. "The influence of direct payments on farmers’ hail insurance decisions," Agricultural Economics, International Association of Agricultural Economists, vol. 43(3), pages 343-354, 05.
  13. Mitchell, Paul D. & Rejesus, Roderick M. & Coble, Keith H. & Knight, Thomas O., 2011. "Analyzing Farmer Participation Intentions and Enrollment Rates for the Average Crop Revenue Election (ACRE) Program," Staff Paper Series 560, University of Wisconsin, Agricultural and Applied Economics.
  14. Carpentier, Alain & Gohin, Alexandre & Heinzel, Christoph, 2012. "Production Effects of Direct Payments to Active Farmers: a Microeconomic Dynamic and Stochastic Analysis," 123rd Seminar, February 23-24, 2012, Dublin, Ireland 122447, European Association of Agricultural Economists.
  15. Girante, Maria Joana & Goodwin, Barry K. & Featherstone, Allen M., 2008. "Farmers' Crop Acreage Decisions in the Presence of Credit Constraints: Do Decoupled Payments Matter?," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6335, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  16. Mittenzwei, Klaus & Britz, Wolfgang & Wieck, Christine, 2014. "Does the “green box†of the European Union distort global markets?," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), issue 1, April.

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