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Wealth, Debt, Government Payments, and Yield Performance

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  • Maria Joana Girante

    ()
    (Universidade do Minho - NIPE)

  • Barry K. Goodwin

    ()
    (North Carolina State University - Dept. Agricultural and Resource Economics, Raleigh, NC, U.S.A)

  • Allen Featherstone

    ()
    (Kansas State University, Department of Agricultural Economics, KS, US)

Abstract

We use a large sample of Kansas Farm Management Association farms for eight different crop/practice combinations (dryland and irrigated corn, sorghum, soybeans, and wheat)for 1994 through 2006 to evaluate the determinants of relative yield performance and explore the ability of financial variables to account for some of the remaining unexplained variation. Our hypothesis is that more financially sound farms should be able to implement better production thecniques, thus have better yields. We further test whether decoupled payments can be used to enhance yield performance. Our hypothesis is that payments may be used to boots investment in inputs or equipament that can lead to better yields. Our results suggest this could be the case.

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Bibliographic Info

Paper provided by NIPE - Universidade do Minho in its series NIPE Working Papers with number 15/2009.

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Date of creation: 2009
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Handle: RePEc:nip:nipewp:15/2009

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Keywords: yield performance; decoupled payments.;

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  1. 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).
  2. Juliano J. Assun��o & Luis H. B. Braido, 2007. "Testing Household-Specific Explanations for the Inverse Productivity Relationship," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(4), pages 980-990.
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