Farm Level Effects of Counter-Cyclical Payments

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Farm Level Effects of Counter-Cyclical Payments

Author Info

Makki, Shiva S.
Johnson, Demcey
Somwaru, Agapi

Abstract

The paper analyzes the role of counter-cyclical (CC) payments in stabilizing farm incomes and investigates whether the payments could affect farmersÂ planting decisions. Our analysis, based on representative farmer approach, finds that CC payments provide a relatively modest enhancement to farm welfare. However, much depends on market price conditions, which change from year to year, and on base acreage (which is determined by planting history). The paper finds little evidence of interaction between revenue insurance and CC payments.

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Publisher Info
Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2005 Annual meeting, July 24-27, Providence, RI with number 19508.

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Date of creation: 2005
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Handle: RePEc:ags:aaea05:19508

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

Weninger, Quinn & Just, Richard, 2002. "Are Crop Yields Normally Distributed?," Staff General Research Papers 5064, Iowa State University, Department of Economics.
Anton, Jesus & le Mouel, Chantal, 2003. "Do Counter-Cyclical Payments In The Fsri Act Create Incentives To Produce?," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25811, International Association of Agricultural Economists. [Downloadable!]
Shogren, Jason & Dohlman, Erik & Chambers, William, 2003. "Behavioral Implications Of Counter-Cyclical Payments And Base Acreage Updating Under The 2002 Farm Act," 2003 Annual meeting, July 27-30, Montreal, Canada 21937, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]

Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

Bhaskar, Arathi & Beghin, John C., 2009. "How coupled are decoupled farm payments? A review of the evidence," Staff General Research Papers 13032, Iowa State University, Department of Economics. [Downloadable!]
Other versions:
- Bhaskar, Arathi & Beghin, John C., 2007. "How coupled are decoupled farm payments? A review of the evidence," Staff General Research Papers 12841, Iowa State University, Department of Economics. [Downloadable!]
- Bhaskar, Arathi & Beghin, John C., 2009. "How Coupled Are Decoupled Farm Payments? A Review of the Evidence," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 34(1), April. [Downloadable!]

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This page was last updated on 2009-12-11.

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