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Do Government Payments Influence Farm Size and Survival?

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Author Info
Key, Nigel D.
Roberts, Michael J.

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Abstract

Using farm-level data from the 1987, 1992, and 1997 Census of Agriculture, this study estimates what effect agricultural payments have had on the likelihood of farm business survival and on farm size. The unique panel data set permits conditioning current farm size on past farm size, which removes much of the individual heterogeneity of farms that could be spuriously correlated with payment levels. Results indicate that between consecutive censuses, past per acre payments have a significant positive effect on farm business survival and a small yet significant influence on the size of continuing farms.

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File URL: http://purl.umn.edu/8645
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Publisher Info
Article provided by Western Agricultural Economics Association in its journal Journal of Agricultural and Resource Economics.

Volume (Year): 32 (2007)
Issue (Month): 02 (August)
Pages:
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Handle: RePEc:ags:jlaare:8645

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Web page: http://waeaonline.org/
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Related research
Keywords: agricultural payments; exit rate; farm size; growth; payment limits; survival; Agricultural and Food Policy; Agricultural Finance; Farm Management;

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Cited by:
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  1. Key, Nigel & Roberts, Robert J., 2008. "Do Decoupled Payments Stimulate Production? Estimating the Effect on Program Crop Acreage Using Matching," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6072, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  2. Dolev, Yuval & Kimhi, Ayal, 2008. "Does Farm Size Really Converge? The Role of Unobserved Farm Efficiency," Discussion Papers 45778, Hebrew University of Jerusalem, Department of Agricultural Economics and Management. [Downloadable!]
Statistics
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This page was last updated on 2009-12-26.

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