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The supply response of U.S. rice: how decoupled are income payments?

  • Beckman, Jayson F.
  • Wailes, Eric J.

This study examines the decoupled nature of direct payments and counter-cyclical payments to determine if they have an impact on U.S. rice area harvested. A naïve expectations model was specified, with the results indicating that direct payments are decoupled; however, counter-cyclical are not. Overall, the results indicate that a change in the expected gross margin or counter-cyclical payments would stimulate a supply response in rice production. The lack of a significant amount of time-series data renders results of this analysis as preliminary.

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Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2005 Annual meeting, July 24-27, Providence, RI with number 19247.

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Date of creation: 2005
Date of revision:
Handle: RePEc:ags:aaea05:19247
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  1. Westcott, Paul C. & Young, C. Edwin & Price, J. Michael, 2002. "The 2002 Farm Act: Provisions And Implications For Commodity Markets," Agricultural Information Bulletins 33745, United States Department of Agriculture, Economic Research Service.
  2. Hennessy, David A., 1998. "The Production Effects of Agricultural Income Support Policies Under Uncertainty," Staff General Research Papers 1207, Iowa State University, Department of Economics.
  3. Peter Kennedy, 2003. "A Guide to Econometrics, 5th Edition," MIT Press Books, The MIT Press, edition 5, volume 1, number 026261183x, June.
  4. Key, Nigel D. & Lubowski, Ruben N. & Roberts, Michael J., 2004. "The 1996 Federal Agriculture Improvement and Reform Act: Correcting a Distortion?," 2004 Annual meeting, August 1-4, Denver, CO 20128, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  5. Anton, Jesus & Le Mouel, Chantal, 2003. "Do Counter-Cyclical Payments In The Fsri Act Create Incentives To Produce?," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25811, International Association of Agricultural Economists.
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