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Impacts of Alternative Farm Policies on Rural Communities

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  • Bowker, J.M.
  • Richardson, James W.

Abstract

The purpose of this study was to describe an LP/IO model for evaluating the economic impacts of alternative farm policies on rural communities and demonstrate its capabilities by analyzing the impacts of three farm policies on a rural community in Texas. Results indicate that in the noncrop sector, two groups of industries are most affected by farm policy. The first group relates to production directly (agricultural services, banking and credit, and nondurable manufacturing) and the second group relates to households (retail trade and services). Farm policies which reduce production but increase net returns cause losses for the first group while benefitting the second group. Both groups are made worse off by farm policies which reduce agricultural production and the value of output.

Suggested Citation

  • Bowker, J.M. & Richardson, James W., 1989. "Impacts of Alternative Farm Policies on Rural Communities," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 21(2), pages 35-46, December.
    • Handle: RePEc:cup:jagaec:v:21:y:1989:i:02:p:35-46_00
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    Cited by:

    1. Harris, Thomas R. & Alevy, Jonathan E. & Kim, Man-Keun & Fadali, Betsy, 2008. "Development and Initial Application of an Integrated Linear Programming/Social Accounting Model: Rangeland Livestock Application," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 8213, Southern Agricultural Economics Association.
    2. Man-Keun Kim & Erqian Julia Zhu & Thomas R. Harris & Jonathan E. Alevy, 2011. "Measuring Regional Economic Impacts from Wildfire: Case Study of Southeast Oregon Cattle-Ranching Business," Working Papers 2011-05, University of Alaska Anchorage, Department of Economics.
    3. Man-Keun Kim & Ertqian Zhu & Thomas R. Harris & Jonathan E. Alevy, 2012. "An LP-SAM Approach for Examining Regional Economic Impacts: An Application to Wildfire Disasters in Southeast Oregon," The Review of Regional Studies, Southern Regional Science Association, vol. 42(3), pages 207-221, Winter.

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