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Agricultural Policy Reform and Off-farm Labour Decisions

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Author Info

  • Teresa Serra
  • Barry K. Goodwin
  • Allen M. Featherstone

Abstract

Off-farm labour decisions of a sample of Kansas farmers are evaluated. The central question of our analysis pertains to whether 1996 US farm policy reforms may have altered the decisions to work off the farm. The effects of policy decoupling on off-farm labour are complex: different aspects of policy changes can have opposing effects on off-farm work decisions. Essentially, this makes this issue an empirical question. Results show that the introduction of fixed, decoupled payments in 1996 might have reduced the likelihood of off-farm labour participation. However, the new policy environment may have increased farm households' revealed aversion to risk, motivating a higher participation in non-farm labour markets. The effects of 1996 policy reforms on farm income variability could have been attenuated by changes in US crop insurance programmes and by an increase in emergency assistance payments towards the end of the 1990s. The reduction in price supports may have increased the motivation for working off the farm. The net effect of the overall reforms on off-farm work participation is not likely to have been large. Copyright 2005 Blackwell Publishing Ltd.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Journal of Agricultural Economics.

Volume (Year): 56 (2005)
Issue (Month): 2 ()
Pages: 271-285

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Handle: RePEc:bla:jageco:v:56:y:2005:i:2:p:271-285

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0021-857X

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Cited by:
  1. Mattas, Konstadinos & Arfini, Filippo & Midmore, Peter & Schmitz, P. Michael & Surry, Yves R., 2008. "Impacts Of Cap Reform On Rural Employment: A Multimodeling Cross Country Approach," 109th Seminar, November 20-21, 2008, Viterbo, Italy 44801, European Association of Agricultural Economists.
  2. Zhu, Xueqin & Demeter, Robert Milan & Oude Lansink, Alfons G.J.M., 2008. "Competitiveness of dairy farms in three countries: the role of CAP subsidies," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44143, European Association of Agricultural Economists.
  3. Loughrey, Jason & Hennessy, Thia & Hanrahan, Kevin & Donnellan, Trevor & Raimondi, Valentina & Olper, Alessandro, 2013. "Determinants of Farm Labour Use: A Comparison between Ireland and Italy," Proceedings Issues, 2013: Productivity and Its Impacts on Global Trade, June 2-4, 2013. Seville, Spain 152332, International Agricultural Trade Research Consortium.
  4. Laure Latruffe & Stefan Mann, 2009. "Another look at the distribution of direct payments: The link with part-time farming," Working Papers SMART - LERECO 200902, INRA UMR SMART.
  5. Raimondi, Valentina & Curzi, Daniele & Bertoni, Danilo & Olper, Alessandro, 2013. "Off-farm Labour Decision of Italian Farm Operators," Factor Markets Working Papers 173, Centre for European Policy Studies.
  6. Zhu, Xueqin & Oude Lansink, Alfons G.J.M., 2008. "Technical Efficiency of the Crop Farms under the Various CAP Reforms: Empirical Studies for Germany, the Netherlands and Sweden," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6589, European Association of Agricultural Economists.
  7. Liesbeth Dries & Pavel Ciaian & d’Artis Kancs, 2012. "Job Creation and Job Destruction in EU Agriculture," LICOS Discussion Papers 31512, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  8. Chang, Yang-Ming & Huang, Biing-Wen & Chen, Yun-Ju, 2012. "Labor supply, income, and welfare of the farm household," Labour Economics, Elsevier, vol. 19(3), pages 427-437.
  9. Andersson, Hans & Ramaswami, Bharat & Moss, Charles B. & Erickson, Kenneth W. & Hallahan, Charles B. & Nehring, Richard F., 2005. "Off-farm Income and Risky Investments: What Happens to Farm and Nonfarm Assets?," 2005 Annual meeting, July 24-27, Providence, RI 19480, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  10. Lien, Gudbrand D. & Kumbhakar, Subal C. & Hardaker, J. Brian, 2008. "Determinants Of Part-Time Farming And Its Effect On Farm Productivity And Efficiency," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6701, European Association of Agricultural Economists.
  11. Kallas, Zein & Gil, Jose Maria & Serra, Teresa, 2009. "Effects of policy instruments on farm investments and production decisions in the Spanish cop sector," 113th Seminar, September 3-6, 2009, Chania, Crete, Greece 58036, European Association of Agricultural Economists.
  12. Mugera, Amin W. & Langemeier, Michael R. & Featherstone, Allen M., 2012. "Labor Productivity Growth in the Kansas Farm Sector: A Tripartite Decomposition Using a Non-Parametric Approach," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 41(3), December.
  13. Moro, Daniele & Sckokai, Paolo, 2013. "The impact of decoupled payments on farm choices: Conceptual and methodological challenges," Food Policy, Elsevier, vol. 41(C), pages 28-38.
  14. Ohe, Yasuo, 2009. "Educational Function of Agriculture and Farm Diversification: Evidence from Dairy Farming Experience Services in Japan," 2009 Conference, August 16-22, 2009, Beijing, China 51557, International Association of Agricultural Economists.
  15. Bojnec, Stefan & Ferto, Imre, 2011. "Impact of Off-farm Income on Farm Efficiency in Slovenia," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108945, Agricultural Economics Society.
  16. Siudek, Tomasz & Zawojska, Aldona, 2011. "Relationship of Development and Fiscal Indicators with Agricultural Producer Support in the OECD Economies," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 116009, European Association of Agricultural Economists.
  17. Zhu, Xueqin & Karagiannis, Giannis & Oude Lansink, Alfons G.J.M., 2008. "Analyzing the impact of direct subsidies on the performance of the Greek Olive Farms with a non-monotonic efficiency effects model," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43612, European Association of Agricultural Economists.

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