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Understanding the Structure of Canadian Farm Incomes in the Design of Safety Net Programs-super-1


  • Al Mussell
  • Terri-lyn Moore
  • Ken McEwan
  • Randy Duffy


"The effectiveness of safety net programs in meeting their purpose depends implicitly on the nature of farm profitability distributions. This study provides an empirical characterization of farm operating profit distributions and assesses the implications for Canadian safety net programs. Pooled time series data from the Statistics Canada Tax Data Program and the Farm Financial Survey is queried across a range of farm types and provinces, with quartile distributions of Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) within four farm-size categories analyzed. The results show that regardless of farm type or province, there is greater variation in operating profit within a sales category than there is across the sales categories, and that the range in operating profit increases with size, revealing some very profitable small farms and unprofitable large farms. Thus, the discussion of the social value of farm stabilization programs ought not to be focused on farm size alone." Copyright 2007 Canadian Agricultural Economics Society.

Suggested Citation

  • Al Mussell & Terri-lyn Moore & Ken McEwan & Randy Duffy, 2007. "Understanding the Structure of Canadian Farm Incomes in the Design of Safety Net Programs-super-1," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 55(4), pages 565-586, December.
  • Handle: RePEc:bla:canjag:v:55:y:2007:i:4:p:565-586

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    References listed on IDEAS

    1. David R. Bell & Jeongwen Chiang & V. Padmanabhan, 1999. "The Decomposition of Promotional Response: An Empirical Generalization," Marketing Science, INFORMS, vol. 18(4), pages 504-526.
    2. Lakshman Krishnamurthi & S. P. Raj, 1991. "An Empirical Analysis of the Relationship Between Brand Loyalty and Consumer Price Elasticity," Marketing Science, INFORMS, vol. 10(2), pages 172-183.
    3. Larson, Bruce A., 2003. "Eco-labels for credence attributes: the case of shade-grown coffee," Environment and Development Economics, Cambridge University Press, vol. 8(03), pages 529-547, July.
    4. Bjorner, Thomas Bue & Hansen, L.G.Lars Garn & Russell, Clifford S., 2004. "Environmental labeling and consumers' choice--an empirical analysis of the effect of the Nordic Swan," Journal of Environmental Economics and Management, Elsevier, vol. 47(3), pages 411-434, May.
    5. Browne, A. W. & Harris, P. J. C. & Hofny-Collins, A. H. & Pasiecznik, N. & Wallace, R. R., 2000. "Organic production and ethical trade: definition, practice and links," Food Policy, Elsevier, vol. 25(1), pages 69-89, February.
    6. Bacon, Christopher, 2005. "Confronting the Coffee Crisis: Can Fair Trade, Organic, and Specialty Coffees Reduce Small-Scale Farmer Vulnerability in Northern Nicaragua?," World Development, Elsevier, vol. 33(3), pages 497-511, March.
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