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Do Government Payments Influence Farm Size and Survival?

Author

Listed:
  • Key, Nigel D.
  • Roberts, Michael J.

Abstract

Using farm-level data from the 1987, 1992, and 1997 Census of Agriculture, this study estimates what effect agricultural payments have had on the likelihood of farm business survival and on farm size. The unique panel data set permits conditioning current farm size on past farm size, which removes much of the individual heterogeneity of farms that could be spuriously correlated with payment levels. Results indicate that between consecutive censuses, past per acre payments have a significant positive effect on farm business survival and a small yet significant influence on the size of continuing farms.

Suggested Citation

  • Key, Nigel D. & Roberts, Michael J., 2007. "Do Government Payments Influence Farm Size and Survival?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 32(2), pages 1-19, August.
    • Handle: RePEc:ags:jlaare:8645
    DOI: 10.22004/ag.econ.8645
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    Citations

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    Cited by:

    1. Key, Nigel D. & Roberts, Robert J., 2008. "Do Decoupled Payments Stimulate Production? Estimating the Effect on Program Crop Acreage Using Matching," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6072, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Shuaizhang Feng & Michael Oppenheimer & Wolfram Schlenker, 2012. "Climate Change, Crop Yields, and Internal Migration in the United States," NBER Working Papers 17734, National Bureau of Economic Research, Inc.
    3. Anton Bekkerman & Eric J. Belasco & Vincent H. Smith, 2019. "Does Farm Size Matter? Distribution of Crop Insurance Subsidies and Government Program Payments across U.S. Farms," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(3), pages 498-518, September.
    4. Burns, Christopher & Kuhns, Ryan, 2016. "The Changing Organization and Well-Being of Midsize U.S. Farms, 1992-2014," Economic Research Report 262190, United States Department of Agriculture, Economic Research Service.
    5. Dolev, Yuval & Kimhi, Ayal, 2010. "Do family farms really converge to a uniform size? The role of unobserved farm efficiency," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(1), pages 1-18.
    6. Samiul Haque, 2022. "US federal farm payments and farm size: Quantile estimation on panel data," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(1), pages 139-154, February.
    7. Azzam, Azzeddine & Walters, Cory & Kaus, Taylor, 2021. "Does subsidized crop insurance affect farm industry structure? Lessons from the U.S," Journal of Policy Modeling, Elsevier, vol. 43(6), pages 1167-1180.
    8. Zier, Patrick, 2013. "Econometric impact assessment of the Common Agricultural Policy in East German agriculture," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 71, number 71.
    9. Plogmann, Jana & Mußhoff, Oliver & Odening, Martin & Ritter, Matthias, 2022. "Farm growth and land concentration," Land Use Policy, Elsevier, vol. 115(C).
    10. Lovén, Ida & Nordin, Martin, 2020. "Are agri-environmental schemes boosting farm survival?," AgriFood-WP 2020:2, Lund University, AgriFood Economics Centre.
    11. Jitea, Ionel-Mugurel & Pocol, Christina Bianca, 2014. "The Impact of the Common Agricultural Policy on Romanian Farming Structures. Who are the Winners and who are the Losers?," 142nd Seminar, May 29-30, 2014, Budapest, Hungary 170799, European Association of Agricultural Economists.
    12. Ayal Kimhi & Nitzan Tzur-Ilan, 2021. "Structural Changes in Israeli Family Farms: Long-Run Trends in the Farm Size Distribution and the Role of Part-Time Farming," Agriculture, MDPI, vol. 11(6), pages 1-15, June.
    13. Graven, Atticus & Schaefer, K. Aleks, 2023. "Rural Broadband Connectivity and Access to US Government Farm Support," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 48(3), September.
    14. Weir, Rebecca & Hadrich, Joleen & Jablonski, Becca & Bauman, Allie, 2022. "Financial performance of beginning dairy farmers in Minnesota," Staff Papers 329376, University of Minnesota, Department of Applied Economics.
    15. Dolev, Yuval & Kimhi, Ayal, 2008. "Does Farm Size Really Converge? The Role of Unobserved Farm Efficiency," Discussion Papers 45778, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
    16. Jitea, Ionel-Mugurel & Pocol, Cristina Bianca, 2014. "The Common Agricultural Policy and productivity gains in Romanian agriculture: is there any evidence of convergence to the Western European realities?," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 116(3), pages 1-3, December.
    17. Burns, Christopher & Prager, Daniel, "undated". "Do Direct Payments and Crop Insurance Influence Commercial Farm Survival and Decisions to Expand?," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235693, Agricultural and Applied Economics Association.
    18. Kimhi, Ayal & Tzur, Nitzan, 2011. "Long-Run Trends in the Farm Size Distribution in Israel: The Role of Part-Time Farming," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114759, European Association of Agricultural Economists.
    19. Becca B. R. Jablonski & Nigel Key & Joleen Hadrich & Allie Bauman & Sarah Campbell & Dawn Thilmany & Martha Sullins, 2022. "Opportunities to support beginning farmers and ranchers in the 2023 Farm Bill," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(3), pages 1177-1194, September.
    20. Burns, Christopher B. & Prager, Daniel L., 2018. "Does Crop Insurance Influence Commercial Crop Farm Decisions to Expand? An Analysis Using Panel Data from the Census of Agriculture," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 43(1), January.
    21. Zier, Patrick & Petrick, Martin, 2010. "Cap Reform And The Effects Of Direct Payments On Heterogeneous Farm Structures In East Germany," 50th Annual Conference, Braunschweig, Germany, September 29-October 1, 2010 93948, German Association of Agricultural Economists (GEWISOLA).
    22. Belasco, Eric J. & Smith, Vincent, 2022. "The impact of policy design on payment concentration in Ad-hoc disaster Relief: Lessons from the Market Facilitation and Coronavirus food Assistance programs," Food Policy, Elsevier, vol. 106(C).
    23. Key, Nigel & Prager, Daniel & Burns, Christopher, 2015. "Household Income Volatility in U.S. Farm Households," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205407, Agricultural and Applied Economics Association.

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