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Another look at the distribution of direct payments: The link with part-time farming

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  • Laure Latruffe
  • Stefan Mann

Abstract

This paper contributes to the research about the relationship between off-farm employment and public support, by taking the issue upside down: does off-farm employment give an advantage to farms regarding the level of public support? Our hypothesis is that a higher degree of decoupling enables part-time farms to capture more easily direct payments than full-time farms. To test this, we compare the largely decoupled direct payment system in Switzerland in 2004, and the rather production-oriented payment system in France in 2003. Results show that Switzerland’s policy favoured farmers with an off-farm employment, while the French direct payment system had the opposite effect.

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Bibliographic Info

Paper provided by INRA UMR SMART in its series Working Papers SMART - LERECO with number 09-02.

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Date of creation: 2009
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Handle: RePEc:rae:wpaper:200902

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Keywords: direct payments; distribution; part-time farming; Switzerland; France;

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  1. Teresa Serra & Barry K. Goodwin & Allen M. Featherstone, 2005. "Agricultural Policy Reform and Off-farm Labour Decisions," Journal of Agricultural Economics, Wiley Blackwell, vol. 56(2), pages 271-285.
  2. Stefan Mann & Laure Latruffe & Werner Hediger, 2010. "On labour productivity to deliver private and public goods –the influence of off-farm income," Working Papers SMART - LERECO 10-09, INRA UMR SMART.
  3. Mann, Stefan & Wustemann, Henry, 2008. "Multifunctionality and a new focus on externalities," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(1), pages 293-307, February.
  4. Hartog,Joop & Maassen van den Brink,Henriëtte (ed.), 2007. "Human Capital," Cambridge Books, Cambridge University Press, number 9780521873161, October.
  5. Stefan Mann, 2005. "Different Perspectives on Cross-Compliance," Environmental Values, White Horse Press, vol. 14(4), pages 471-482, November.
  6. Kwon, Chul-Woo & Orazem, Peter & Otto, Daniel, 2003. "Off-Farm Labor Supply Responses to Permanent and Transitory Farm Income," Staff General Research Papers 10643, Iowa State University, Department of Economics.
  7. Thia Hennessy & Fiona Thorne, 2005. "How Decoupled Are Decoupled Payments? The Evidence from Ireland," Working Papers 0501, Rural Economy and Development Programme,Teagasc.
  8. Paul Allanson, 2006. "The Redistributive Effects of Agricultural Policy on Scottish Farm Incomes," Journal of Agricultural Economics, Wiley Blackwell, vol. 57(1), pages 117-128, 03.
  9. E. Phimister & D. Roberts, 2006. "The Effect of Off-farm Work on the Intensity of Agricultural Production," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 34(4), pages 493-515, August.
  10. Yann Desjeux & Hervé Guyomard & Laure Latruffe, 2007. "Agricultural policies in France: from EU regulation to national design," Post-Print hal-00397354, HAL.
  11. Nigel Curry & Erwin Stucki, 1997. "Swiss Agricultural Policy and the Environment: An Example for the Rest of Europe to Follow?," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 40(4), pages 465-482.
  12. Phimister, Euan & Roberts, Deborah, 2002. "The Effect of Off-farm Work on Production Intensity and Output Structure," Workshop on the Farm Household-Firm Unit: Its Importance in Agriculture and Implications for Statistics, April 12-13, 2002, Wye Campus,Imperial College 15718, International Agricultural Policy Reform and Adjustment Project (IAPRAP).
  13. 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, Agricultural and Applied Economics Association, vol. 88(2), pages 393-408.
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