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How coupled are decoupled farm payments? A review of the evidence

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Author Info
Bhaskar, Arathi
Beghin, John C.

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Abstract

This survey paper explores the literature on decoupling of farm programs that has emerged in the last 10 years. The paper identifies and assesses the various channels of potential coupling of decoupled farm payments and provides a taxonomy of coupling mechanisms found in theoretical and empirical papers. Coupling of decoupled payments is pervasive but effects when measurable are small, with the exception of the impact on land values. The paper points to unresolved issues on potential coupling mechanisms for further research. JEL classification: Q18, Q12, Q17

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Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 13032.

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Date of creation: 20 Feb 2009
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Publication status: Published in Journal of Agricultural and Resource Economics, 2009, Vol. 34, No. 1, pp. 130-153.
Handle: RePEc:isu:genres:13032

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Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
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Related research
Keywords: agricultural policy; decoupled; decoupling; farm payments; programs program; subsidies; support;

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Find related papers by JEL classification:
Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture

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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.:
  1. Sean A. Cahill, 1997. "Calculating The Rate Of Decoupling For Crops Under Cap/Oilseeds Reform," Journal of Agricultural Economics, Blackwell Publishing, vol. 48(1-3), pages 349-378. [Downloadable!] (restricted)
  2. Teresa Serra & David Zilberman & Barry K. Goodwin & Keijo Hyvonen, 2005. "Replacement of Agricultural Price Supports by Area Payments in the European Union and the Effects on Pesticide Use," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 87(4), pages 870-884, November. [Downloadable!] (restricted)
  3. Anton, Jesus & Mouel, Chantal Le, 2004. "Do counter-cyclical payments in the 2002 US Farm Act create incentives to produce?," Agricultural Economics, Blackwell, vol. 31(2-3), pages 277-284, December. [Downloadable!] (restricted)
  4. Lagerkvist, Carl J. & Olson, Kent D., 2002. "Optimal Capital Structure And Income Support Reform Uncertainty," 2002 Annual meeting, July 28-31, Long Beach, CA 19694, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  5. Dewbre, Joe & Anton, Jesus & Thompson, Wyatt, 2001. " The Transfer Efficiency and Trade Effects of Direct Payments," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 83(5), pages 1204-14. [Downloadable!] (restricted)
  6. Barry K. Goodwin & Ashok K. Mishra, 2006. "Are "Decoupled" Farm Program Payments Really Decoupled? An Empirical Evaluation," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 88(1), pages 73-89, 02. [Downloadable!] (restricted)
  7. Makki, Shiva S. & Johnson, Demcey & Somwaru, Agapi, 2005. "Farm Level Effects of Counter-Cyclical Payments," 2005 Annual meeting, July 24-27, Providence, RI 19508, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  8. Aksoy, M. Ataman & Beghin, John C., 2005. "Global Agricultural Trade and Developing Countries," Staff General Research Papers 12228, Iowa State University, Department of Economics. [Downloadable!]
  9. Roe, Terry & Somwaru, Agapi & Diao, Xinshen, 2002. "Do direct payments have intertemporal effects on U.S. agriculture?," TMD discussion papers 104, International Food Policy Research Institute (IFPRI). [Downloadable!]
  10. Mary Clare Ahearn & Hisham El-Osta & Joe Dewbre, 2006. "The Impact of Coupled and Decoupled Government Subsidies on Off-Farm Labor Participation of U.S. Farm Operators," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 88(2), pages 393-408, 05. [Downloadable!] (restricted)
  11. Daniel A. Sumner, 2003. "Implications of the US Farm Bill of 2002 for agricultural trade and trade negotiations," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society and Blackwell Publishing Asia Pty Ltd., vol. 47(1), pages 99-122, 03. [Downloadable!] (restricted)
  12. Christopher R. McIntosh & Jason F. Shogren & Erik Dohlman, 2007. "Supply Response to Countercyclical Payments and Base Acre Updating under Uncertainty: An Experimental Study," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 89(4), pages 1046-1057, November. [Downloadable!] (restricted)
  13. Teresa Serra & David Zilberman & Barry K. Goodwin & Allen Featherstone, 2006. "Effects of decoupling on the mean and variability of output," European Review of Agricultural Economics, Oxford University Press for the Foundation for the European Review of Agricultural Economics, vol. 33(3), pages 269-288, September.
  14. Barry K. Goodwin & Ashok K. Mishra & François N. Ortalo-Magné, 2003. "What's Wrong with Our Models of Agricultural Land Values?," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 85(3), pages 744-752, 08. [Downloadable!] (restricted)
  15. Keith H. Coble & J. Corey Miller & M. Darren Hudson, 2008. "Decoupled Farm Payments and Expectations for Base Updating," Review of Agricultural Economics, American Agricultural Economics Association, vol. 30(1), pages 27-42, 03. [Downloadable!] (restricted)
  16. Nancy H. Chau & Harry de Gorter, 2005. "Disentangling the Consequences of Direct Payment Schemes in Agriculture on Fixed Costs, Exit Decisions, and Output," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 87(5), pages 1174-1181, November. [Downloadable!] (restricted)
  17. Burfisher, Mary E & Robinson, Sherman & Thierfelder, Karen, 2000. " North American Farm Programs and the WTO," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 82(3), pages 768-74, August. [Downloadable!] (restricted)
  18. Nigel Key & Michael J. Roberts, 2009. "Nonpecuniary Benefits to Farming: Implications for Supply Response to Decoupled Payments," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 91(1), pages 1-18, 02. [Downloadable!] (restricted)
  19. Hisham El-Osta & Ashok Mishra & Mary Ahearn, 2004. "Labor Supply by Farm Operators Under “Decoupled” Farm Program Payments," Review of Economics of the Household, Springer, vol. 2(4), pages 367-385, 08. [Downloadable!] (restricted)
  20. Serra, Teresa & Zilberman, David & Goodwin, Barry K. & Featherstone, Allen M., 2005. "Decoupling farm policies: how does this affect production?," 2005 Annual meeting, July 24-27, Providence, RI 19194, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
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(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.)

  1. GIRANTE, Maria Joana & GOODWIN, Barry K. & FEATHERSTONE, Allen, 2008. "Farmers' Crop Acreage Decisions in the Presence of Credit Constraints: Do Decoupled Payments Matter?," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6335, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  2. Bhaskar, Arathi & Beghin, John C., 2007. "Decoupled Farm Payments and the Role of Base Acreage and Yield Updating Under Uncertainty," Staff General Research Papers 12851, Iowa State University, Department of Economics. [Downloadable!]
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