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Distributional Impact of U.S. Farm Commodity Programs: Accounting for Alternative Farm Household Typologies

Author

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  • Somwaru, Agapi
  • Whitaker, James B.
  • Vogel, Stephen J.
  • Morehart, Mitchell J.
  • Edmondson, William
  • Young, C. Edwin

Abstract

Agricultural households adjust to policy changes through market mechanisms by altering: their production mix, labor input, and on- and off-farm investments. Because of the significant heterogeneity among farms in the US agricultural sector, various types of farm households respond to the same policy change in significantly different ways. The parameters used to classify farm households into different typologies may also play a significant role in the interpretation of observed effects of policy changes. This paper, using a highly disaggregated U.S. Computable General Equilibrium (CGE) model, analyzes the distributional impacts of policy changes involving price-contingent government payments on alternative U.S. farm household typologies. We find that farm households do vary their responses to an elimination of price-contingent support based on location, production specialty, and farm categorization.

Suggested Citation

  • Somwaru, Agapi & Whitaker, James B. & Vogel, Stephen J. & Morehart, Mitchell J. & Edmondson, William & Young, C. Edwin, 2007. "Distributional Impact of U.S. Farm Commodity Programs: Accounting for Alternative Farm Household Typologies," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon 9885, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea07:9885
    DOI: 10.22004/ag.econ.9885
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    Keywords

    Agricultural and Food Policy;

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