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United States Farm Commodity Programs and Land Use

Author

Listed:
  • Bruce Gardner
  • Ian Hardie
  • Peter J. Parks

Abstract

We estimate the impact of government payments on United States land use, using county-level data from the National Resources Inventory and the Census of Agriculture in 1987, 1992, and 1997. Although payments were made under decoupled support programs, effects on land use are found to be significant. On average for the years studied, our simulations indicate that United States cropland acreage would have been 89 million acres (22%) less if program payments had been reduced to half their observed level (holding market prices of commodities constant). Percentage reductions are largest in marginal crop producing areas of the nation. Copyright 2010, Oxford University Press.

Suggested Citation

  • Bruce Gardner & Ian Hardie & Peter J. Parks, 2010. "United States Farm Commodity Programs and Land Use," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(3), pages 803-820.
    • Handle: RePEc:oup:ajagec:v:92:y:2010:i:3:p:803-820
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    File URL: http://hdl.handle.net/10.1093/ajae/aap039
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    Cited by:

    1. Mitchell, Paul D. & Rejesus, Roderick M. & Coble, Keith H. & Knight, Thomas O., 2011. "Analyzing Farmer Participation Intentions and Enrollment Rates for the Average Crop Revenue Election (ACRE) Program," Staff Papers 116705, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    2. Jones, Carol Adaire & Nickerson, Cynthia J. & Heisey, Paul W., 2012. "New Uses of Old Tools: An Assessment of Current and Potential Agricultural Greenhouse Gas Mitigation with Sector-based Policies," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124735, Agricultural and Applied Economics Association.
    3. Mitchell, Paul D. & Rejesus, Roderick M. & Coble, Keith H. & Knight, Thomas O., 2010. "A Real Options Framework for Analyzing Program Participation as Human Capital Investments: The Case of the Average Crop Revenue Election (ACRE) Program," Staff Papers 92896, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    4. Claassen, Roger & Carriazo, Fernando & Cooper, Joseph C. & Hellerstein, Daniel & Ueda, Kohei, 2011. "Grassland to Cropland Conversion in the Northern Plains: The Role of Crop Insurance, Commodity, and Disaster Programs," Economic Research Report 262239, United States Department of Agriculture, Economic Research Service.
    5. Yinhao Wu & Enru Wang & Changhong Miao, 2019. "Fertilizer Use in China: The Role of Agricultural Support Policies," Sustainability, MDPI, vol. 11(16), pages 1-23, August.
    6. Xinru Han & Ping Xue & Ningning Zhang, 2021. "Impact of Grain Subsidy Reform on the Land Use of Smallholder Farms: Evidence from Huang-Huai-Hai Plain in China," Land, MDPI, vol. 10(9), pages 1-15, September.
    7. Moro, Daniele & Sckokai, Paolo, 2013. "The impact of decoupled payments on farm choices: Conceptual and methodological challenges," Food Policy, Elsevier, vol. 41(C), pages 28-38.

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