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How Coupled are Decoupled Farm Payments? A Review of Coupling Mechanisms and the Evidence

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  • Bhaskar, Arathi
  • Beghin, John C.

Abstract

This survey paper explores the literature on decoupling of farm programs that has emerged in the last 10 years. The paper identifies and assesses the various channels of potential coupling of decoupled farm payments and provides taxonomy of coupling mechanisms found in theoretical and empirical papers. Coupling of decoupled payments is pervasive but effects when measurable are small, with the exception of the impact on land values. The paper points to unresolved issues on potential coupling mechanisms for further research.

Suggested Citation

  • Bhaskar, Arathi & Beghin, John C., 2007. "How Coupled are Decoupled Farm Payments? A Review of Coupling Mechanisms and the Evidence," Working Papers 7347, Iowa State University, Department of Economics.
    • Handle: RePEc:ags:genres:7347
    DOI: 10.22004/ag.econ.7347
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    References listed on IDEAS

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    Cited by:

    1. Bhaskar, Arathi & Beghin, John C., 2007. "Decoupled Farm Payments and the Role of Base Updating Under Uncertainty," Working Papers 7350, Iowa State University, Department of Economics.
    2. Rizov, Marian & Davidova, Sophia & Bailey, Alastair, 2019. "Employment effects of CAP payments in the UK non-farm economy," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, pages 147-161.
    3. Czyżewski, Bazyli, 2016. "Political Rents of European Farmers in the Sustainable Development Paradigm. International, national and regional perspective," MPRA Paper 74253, University Library of Munich, Germany.
    4. Girante, Maria Joana & Goodwin, Barry K. & Featherstone, Allen M., 2008. "Farmers' Crop Acreage Decisions in the Presence of Credit Constraints: Do Decoupled Payments Matter?," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6335, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Arathi Bhaskar & John C. Beghin, 2010. "Decoupled Farm Payments and the Role of Base Acreage and Yield Updating Under Uncertainty," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(3), pages 849-858.
    6. Czekaj, Stefania & Czubak, Wawrzyniec & Góral, Justyna & Majewski, Edward & Poczta, Walenty & Sadowski, Arkadiusz & Wąs, Adam, 2014. "Direct payments and budget subsidies versus finance and functioning of holdings and agricultural enterprises," Multiannual Program Reports 207399, Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI).
    7. Ricome, Aymeric & Chaib, Karim & Ridier, Aude & Kephaliacos, Charilaos & Carpy-Goulard, Francoise, 2012. "The role of cash crop marketing contracts in the adoption of low-input practices in the presence of risk and income supports," 126th Seminar, June 27-29, 2012, Capri, Italy 126222, European Association of Agricultural Economists.

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