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Do Government Payments Influence Farm Size and Survival?

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Author Info

  • Key, Nigel D.
  • Roberts, Michael J.

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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Bibliographic 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:
  1. Zier, Patrick, 2013. "Econometric impact assessment of the Common Agricultural Policy in East German agriculture," Studies on the Agricultural and Food Sector in Central and Eastern Europe, LeibĀ­niz Institute of Agricultural Development in Central and Eastern Europe (IAMO), volume 71, number 71.
  2. Key, Nigel D. & 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).
  3. Shuaizhang Feng & Michael Oppenheimer & Wolfram Schlenker, 2012. "Climate Change, Crop Yields, and Internal Migration in the United States," NBER Working Papers 17734, National Bureau of Economic Research, Inc.
  4. Kimhi, Ayal & Tzur, Nitzan, 2011. "Long-Run Trends in the Farm Size Distribution in Israel: The Role of Part-Time Farming," Discussion Papers 99217, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
  5. Zier, Patrick & Petrick, Martin, 2010. "Cap Reform And The Effects Of Direct Payments On Heterogeneous Farm Structures In East Germany," 50st Annual Conference, Braunschweig, Germany, September 29-October 1, 2010 93948, German Association of Agricultural Economists (GEWISOLA).
  6. 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.

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