IDEAS home Printed from
   My bibliography  Save this article

Financial Implications Of A New Farm Policy Environment


  • Vandeveer, Lonnie R.
  • Henning, Steven A.
  • Kennedy, Gary A.
  • Li, Chunxiao


The 1996 Federal Agriculture Improvement and Reform (FAIR) Act dramatically affects the decision-making environment of farms by introducing provisions for reducing farm income support payments. These program changes are likely to affect not only farm incomes, but also farm capital asset markets. The combined effect of these two financial variables is expected to alter the risk position and the debt repayment capacity on farms. Empirical results of this analysis indicate that the absence of farm income support payments reduces debt repayment capacity and increases the risk position on a representative Louisiana cotton-soybean farm.

Suggested Citation

  • Vandeveer, Lonnie R. & Henning, Steven A. & Kennedy, Gary A. & Li, Chunxiao, 2000. "Financial Implications Of A New Farm Policy Environment," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 18(3).
  • Handle: RePEc:ags:jloagb:14710

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Patricia A. Duffy & C. Robert Taylor & Danny L. Cain & George J. Young, 1994. "The Economic Value of Farm Program Base," Land Economics, University of Wisconsin Press, vol. 70(3), pages 318-329.
    2. J. B. Bullock & W. L. Nieuwoudt & E. C. Pasour, 1977. "Land Values and Allotment Rents," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 59(2), pages 380-384.
    Full references (including those not matched with items on IDEAS)


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:jloagb:14710. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.