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Government Payments And Structural Change In Agriculture

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  • Key, Nigel D.
  • Roberts, Michael J.

Abstract

Economic theory suggests several possible mechanisms through which direct government farm payments might influence the pattern of structural change in agriculture. This study estimates what effect farm payments have had on farm structure using farm-level panel data from the 1987, 1992, and 1997 Agricultural Censuses. Results suggest that the size of per-acre payments received in the past are associated with a small and weakly positive change in farm size between consecutive censuses, but that payments are significantly correlated with an increased likelihood of farm survival between consecutive periods.

Suggested Citation

  • Key, Nigel D. & Roberts, Michael J., 2003. "Government Payments And Structural Change In Agriculture," 2003 Annual meeting, July 27-30, Montreal, Canada 22106, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea03:22106
    DOI: 10.22004/ag.econ.22106
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    References listed on IDEAS

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    1. Joseph A. Atwood & Myles J. Watts & Alan E. Baquet, 1996. "An Examination of the Effects of Price Supports and Federal Crop Insurance Upon the Economic Growth, Capital Structure, and Financial Survival of Wheat Growers in the Northern High Plains," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(1), pages 212-224.
    2. Roberts, Michael J. & Key, Nigel D., 2002. "Risk And Structural Change In Agriculture: How Income Shocks Influence Farm Size," 2002 Annual meeting, July 28-31, Long Beach, CA 19661, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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    Cited by:

    1. Latruffe, Laure & Dupuy, Aurelia & Desjeux, Yann, 2012. "What would farmers’ strategies be in a no-CAP situation? An illustration to France," 86th Annual Conference, April 16-18, 2012, Warwick University, Coventry, UK 134989, Agricultural Economics Society.
    2. Kostov, Philip & Patton, Myles & Moss, Joan E. & McErlean, Seamus, 2005. "Does Gibrat's Law Hold Amongst Dairy Farmers in Northern Ireland?," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24775, European Association of Agricultural Economists.
    3. Ahearn, Mary Clare & Yee, Jet & Korb, Penelope J., 2004. "Agricultural Structural Adjustment To Government Policies: Empirical Evidence," 2004 Annual meeting, August 1-4, Denver, CO 20367, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Laure Latruffe & Aurélia Dupuy & Yann Desjeux, 2012. "What would farmers’ strategies be in a no-CAP situation? An illustration from France," Working Papers SMART 12-02, INRAE UMR SMART.
    5. Shrestha, Sundar S. & Findeis, Jill L., 2005. "Space, Government Payments, and Off-Farm Labor Response of Principal Farm Operators: A County-Level Analysis," 2005 Annual meeting, July 24-27, Providence, RI 19511, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Zheng, Yanan & Goddard, Ellen W. & Qiu, Feng, 2018. "Exploring the Effect of Disease Outbreaks on Farm Structure Change: A Dynamic Analysis for Canadian Pig Industry," 2018 Annual Meeting, August 5-7, Washington, D.C. 273801, Agricultural and Applied Economics Association.
    7. Bartolini, Fabio & Sardonini, Laura & Viaggi, Davide, 2010. "Determinants of farm size expansion among eu farmers," MPRA Paper 24011, University Library of Munich, Germany.

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    Keywords

    Agricultural and Food Policy;

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