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The Distributional Effects Of Land Controls In Agriculture

Author

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  • Rausser, Gordon C.
  • Zilberman, David
  • Just, Richard E.

Abstract

The paper introduces a framework for analyzing the impacts of land control programs on agricultural production under heterogenous land qualities, heterogenous production technologies and imperfect capital markets. It shows that the introduction of diversion programs tends to benefit land owners while harming operators. Moreover, it tends to increase the separation of land ownership and operation and increase concentration among operators. Diversion programs tend to raise land prices lass than proportional to the increases in rental rates. They encourage the adoption of yield increasing technologies, and may also encourage adoption of cost reducing technologies when credit is a binding constraint. Participation in voluntary government programs tends to be greater in regions with higher costs, less efficient marginal technology and less efficient marginal land.

Suggested Citation

  • Rausser, Gordon C. & Zilberman, David & Just, Richard E., 1984. "The Distributional Effects Of Land Controls In Agriculture," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 9(2), pages 1-18, December.
    • Handle: RePEc:ags:wjagec:32138
    DOI: 10.22004/ag.econ.32138
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    References listed on IDEAS

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    1. Carter, Harold O. & Johnston, Warren E., 1978. "Some Forces Affecting the Changing Structure, Organization and Control of American Agriculture," 1978 Annual Meeting, August 6-9, Blacksburg, Virginia 283972, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Just, Richard E. & Zilberman, David D. & Rausser, Gordon C., 1982. "The role of governmental policy in agricultural land appreciation and wealth accumulation," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt1g0474c0, Department of Agricultural & Resource Economics, UC Berkeley.
    3. Bruce L. Gardner, 1978. "Public Policy and the Control of Agricultural Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 60(5), pages 836-843.
    4. Spreen, Thomas H., 2006. "Price Endogenous Mathematical Programming Models and Trade Analysis," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 38(2), pages 249-253, August.
    5. Rauseer, Gordon C. & Zilberman, David & Just, Richard E., 1981. "The Distributional Impacts of Agricultural Programs," AAEA Miscellaneous Paper Archive 337331, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Bruce A. McCarl & Thomas H. Spreen, 1980. "Price Endogenous Mathematical Programming As a Tool for Sector Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(1), pages 87-102.
    7. Harold O. Carter & Warren E. Johnston, 1978. "Some Forces Affecting the Changing Structure, Organization, and Control of American Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 60(5), pages 738-748.
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    Citations

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    Cited by:

    1. Foster, William E. & Babcock, Bruce A., 1993. "Commodity Policy, Price Incentives, and the Growth in Per-Acre Yields," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 25(1), pages 253-265, July.
    2. Kym Anderson & Gordon Rausser & Johan Swinnen, 2013. "Political Economy of Public Policies: Insights from Distortions to Agricultural and Food Markets," Journal of Economic Literature, American Economic Association, vol. 51(2), pages 423-477, June.
    3. Howland, Frank M., "undated". "Alternative Empirical Measures Of The Supply Effect Of The Corn Price Support Program," 1990 Annual meeting, August 5-8, Vancouver, Canada 271035, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Brooks, Harvey G., 1990. "Three studies in economics," ISU General Staff Papers 1990010108000010481, Iowa State University, Department of Economics.
    5. Dana L. Hoag & William E. Foster & Bruce A. Babcock, 1993. "Field-Level Measurement of Land Productivity and Program Slippage," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(1), pages 181-189.
    6. Just, Richard E. & Zilberman, David D. & Rausser, Gordon C., 1982. "The role of governmental policy in agricultural land appreciation and wealth accumulation," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt1g0474c0, Department of Agricultural & Resource Economics, UC Berkeley.
    7. Ekaterina Vorotnikova & Serhat Asci & James L. Seale, 2018. "Joint production, land allocation, and the effects of the production flexibility program," Empirical Economics, Springer, vol. 55(3), pages 1121-1143, November.
    8. Bucholtz, Shawn & Roberts, Michael J., 2002. "Slippage Or Spurious Correlation: An Analysis Of The Conservation Reserve Program," 2002 Annual meeting, July 28-31, Long Beach, CA 19714, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Nathan P. Hendricks, 2022. "Would farmers benefit from removing more land from production in the next farm bill?," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(3), pages 1139-1157, September.
    10. Kym Anderson, 2016. "Agricultural Trade, Policy Reforms, and Global Food Security," Palgrave Studies in Agricultural Economics and Food Policy, Palgrave Macmillan, number 978-1-137-46925-0, June.
    11. Epplin, Francis M., 1997. "Wheat Yield Response To Changes In Production Practices Induced By Program Provision," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 22(2), pages 1-12, December.
    12. Lichtenberg, Erik, 2002. "Agriculture and the environment," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 2, chapter 23, pages 1249-1313, Elsevier.
    13. Runge, C. Ford, 1994. "Designing Green Support: Incentive Compatibility And The Commodity Programs," Working Papers 14462, University of Minnesota, Center for International Food and Agricultural Policy.
    14. Lynch, Sarah, 1994. "Designing Green Support Programs," Policy Studies Program Reports, Henry A. Wallace Institute for Alternative Agriculture, number 134111.
    15. Zilberman, David D. & Rausser, Gordon C., 1981. "Comments on Richard Day's "Farm output decisions and adaptive economic behavior: recent theoretical considerations"," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt24g285n6, Department of Agricultural & Resource Economics, UC Berkeley.

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