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Targeting Farm Programs

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  • DANIEL A. SUMNER

Abstract

“Targeting” in the agricultural policy context generally means directing payments to small or financially vulnerable farms or to poor farm families. This may seem a worthy objective. If farm programs were designed to act as welfare, then focusing the benefits on the needy clearly would be appropriate. Payments now are roughly the difference between the market price per unit produced and a high government price per unit. Therefore, farms with more output get larger payments. Further, revising farm programs to act as aid to the needy would be difficult. Targeting amendments currently proposed generally are unworkable and likely would do little to change the actual distribution of benefits. Finally, because farmers currently are eligible for other aid programs and because few producers of significant output meet general welfare criteria, seemingly little real reason exists for attempting to convert farm programs rather than simply phasing down the payment levels overall.

Suggested Citation

  • Daniel A. Sumner, 1991. "Targeting Farm Programs," Contemporary Economic Policy, Western Economic Association International, vol. 9(1), pages 93-106, January.
    • Handle: RePEc:bla:coecpo:v:9:y:1991:i:1:p:93-106
    DOI: 10.1111/j.1465-7287.1991.tb00323.x
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    References listed on IDEAS

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    1. Glaser, Lewrene K., 1986. "Provisions of the Food Security Act of 1985," Agricultural Information Bulletins 309344, United States Department of Agriculture, Economic Research Service.
    2. Lederer, Thomas H. & Pollack, Susan L., 1988. "1987 Budget Acts: Description Of Changes In Agricultural Policies And Programs," Staff Reports 278005, United States Department of Agriculture, Economic Research Service.
    3. Reinsel, Robert & Craven, John & Allen, Joyce, 1987. "Redistributing Farm Program Benefits," Agricultural Information Bulletins 309384, United States Department of Agriculture, Economic Research Service.
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    Cited by:

    1. Julian Alston & Colin Carter, 1991. "Causes And Consequences Of Farm Policy," Contemporary Economic Policy, Western Economic Association International, vol. 9(1), pages 107-121, January.
    2. Allen, Douglas W & Lueck, Dean, 1998. "The Nature of the Farm," Journal of Law and Economics, University of Chicago Press, vol. 41(2), pages 343-386, October.

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