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Why ‟Rich Farmers” Demand Financial Support?

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  • Poczta-Wajda, Agnieszka

Abstract

People tend to compare themselves with other people from their surroundings. This leads to a situation, in which even a rich person in absolute terms, can feel poor in relative terms, if people from surroundings are richer. We call it relative deprivation. Farmers in developed economies claim to be poor, because they compare themselves not with farmers in poor economies, but rather with other members of their own society who work outside the agriculture and whose incomes are usually higher. Feeling relatively deprived, farmers in developed economies demand stronger financial support and act intensively to convince policymakers to support them. Hence, the main aim of this paper is to analyze the relation between the relative deprivation of an average farmer in countries with different development level and the level of support for farmers. Results of this study prove that the level of relative deprivation of famers is strongly and positively correlated with the level of support for farmers. Hence the idea of relative deprivation might provide additional political explanation of different level of support for farmers in countries with different development level.

Suggested Citation

  • Poczta-Wajda, Agnieszka, 2015. "Why ‟Rich Farmers” Demand Financial Support?," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2015(4), August.
    • Handle: RePEc:ags:paaero:233299
    DOI: 10.22004/ag.econ.233299
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    References listed on IDEAS

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    1. Anderson,Kym (ed.), 2013. "The Political Economy of Agricultural Price Distortions," Cambridge Books, Cambridge University Press, number 9781107616271, September.
    2. Stark, Oded, 2013. "Stressful Integration," European Economic Review, Elsevier, vol. 63(C), pages 1-9.
    3. Alessandro Olper, 2001. "Determinants of Agricultural Protection: The Role of Democracy and Institutional Setting Alessandro Olper," Journal of Agricultural Economics, Wiley Blackwell, vol. 52(2), pages 75-92, May.
    4. Stark, Oded & Micevska, Maja & Mycielski, Jerzy, 2009. "Relative poverty as a determinant of migration: Evidence from Poland," Economics Letters, Elsevier, vol. 103(3), pages 119-122, June.
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    1. Czyżewski, Bazyli & Matuszczak, Anna, 2016. "Determinanty nożyc cen w rolnictwie krajów Unii Europejskiej o zróżnicowanej strukturze agrarnej," Village and Agriculture (Wieś i Rolnictwo), Polish Academy of Sciences (IRWiR PAN), Institute of Rural and Agricultural Development, vol. 3(172), January.

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