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An Analysis Of The Government Payment Program In Us Agriculture

Author

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  • Gulati, Sumeet
  • Mishra, Ashok K.

Abstract

In an analysis of the determinants of government payments to a farm the paper finds cropping patterns, soil productivity, and more importantly human capital variables such as education, and age as significant. While analyzing the effect of government payments on the profit efficiency of agriculture the paper finds that the inclusion of government payments does not cause structural change in US agriculture (i.e., a change in returns to scale of the underlying technology). Nevertheless, the paper does find evidence of an indirect effect of government payments on efficiency. Farms that received greater government payments on aggregate were more efficient than other farms.

Suggested Citation

  • Gulati, Sumeet & Mishra, Ashok K., 2003. "An Analysis Of The Government Payment Program In Us Agriculture," Working Papers 15837, University of British Columbia, Food and Resource Economics.
    • Handle: RePEc:ags:ubcwps:15837
    DOI: 10.22004/ag.econ.15837
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    References listed on IDEAS

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    1. Orden, David & Paarlberg, Robert & Roe, Terry, 1999. "Policy Reform in American Agriculture," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226632643, April.
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