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Agricultural Structural Adjustment To Government Policies: Empirical Evidence

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  • Ahearn, Mary Clare
  • Yee, Jet
  • Korb, Penelope J.

Abstract

Economic theory alone cannot predict the impacts of government payments on farm structure. We estimate a 5-equation model for the 1978-96 period to measure the impacts using state micro and macro data sets. We found that government payments were positively associated with farm size and farm exits, but negatively associated with the extent of consolidation in farm production and the off-farm work of operators.

Suggested Citation

  • Ahearn, Mary Clare & Yee, Jet & Korb, Penelope J., 2004. "Agricultural Structural Adjustment To Government Policies: Empirical Evidence," 2004 Annual meeting, August 1-4, Denver, CO 20367, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea04:20367
    DOI: 10.22004/ag.econ.20367
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    References listed on IDEAS

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    1. Badi H. Baltagi, 2021. "Simultaneous Equations with Error Components," Springer Texts in Business and Economics, in: Econometric Analysis of Panel Data, edition 6, chapter 0, pages 157-186, Springer.
    2. Ahearn, Mary & Johnson, Jim & Strickland, Roger, 1985. "The Distribution Of Income And Wealth Of Farm Operator Households," 1985 Annual Meeting, August 4-7, Ames, Iowa 278657, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. El-Osta, Hisham S. & Ahearn, Mary Clare, 1996. "Estimating the Opportunity Cost of Unpaid Farm Labor for U.S. Farm Operators," Technical Bulletins 156784, United States Department of Agriculture, Economic Research Service.
    4. Ahearn, Mary Clare & Yee, Jet & Huffman, Wallace E., 2002. "The Impact Of Government Policies On Agricultural Productivity And Structure: Preliminary Results," 2002 Annual meeting, July 28-31, Long Beach, CA 19865, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. J. Taylor & Irma Adelman, 2003. "Agricultural Household Models: Genesis, Evolution, and Extensions," Review of Economics of the Household, Springer, vol. 1(1), pages 33-58, January.
    6. Key, Nigel D. & Roberts, Michael J., 2003. "Government Payments And Structural Change In Agriculture," 2003 Annual meeting, July 27-30, Montreal, Canada 22106, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Andrew P. Barkley, 1990. "The Determinants of the Migration of Labor out of Agriculture in the United States, 1940–85," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(3), pages 567-573.
    8. Howard D. Leathers, 1992. "The Market for Land and the Impact of Farm Programs on Farm Numbers," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(2), pages 291-298.
    9. Mary Ahearn & Jim Johnson & Roger Strickland, 1985. "The Distribution of Income and Wealth of Farm Operator Households," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(5), pages 1087-1094.
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    Cited by:

    1. Shrestha, Sundar S. & Findeis, Jill L., 2005. "Space, Government Payments, and Off-Farm Labor Response of Principal Farm Operators: A County-Level Analysis," 2005 Annual meeting, July 24-27, Providence, RI 19511, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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