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Decoupled Payments In A Changing Policy Setting

Author

Listed:
  • Ahearn, Mary Clare
  • Collender, Robert N.
  • Diao, Xinshen
  • Harrington, David H.
  • Hoppe, Robert A.
  • Korb, Penelope J.
  • Makki, Shiva S.
  • Morehart, Mitchell J.
  • Roberts, Michael J.
  • Roe, Terry L.
  • Somwaru, Agapi
  • Vandeveer, Monte
  • Westcott, Paul C.
  • Young, C. Edwin

Abstract

The studies in this report analyze the effects of decoupled payments in the Federal Agriculture Improvement and Reform (FAIR) Act on recipient households, and assess land, labor, risk management, and capital market conditions that can lead to links between decoupled payments and production choices. Each study contributes a different perspective to understanding the response of U.S. farm households and production to decoupled income transfers. Some use new microdata on farm households collected through USDA's Agricultural Resource Management Survey (ARMS), initiated in 1996, and its predecessor survey. These data are used to compare household and producer behavior and outcomes before and after the FAIR Act. Other studies use applied or conceptual models to characterize the impact of introducing decoupled payments. Collectively, the chapters represent an early stage in the empirical analysis of decoupled payments. The studies address many aspects of the payments' household impacts but remaining issues call for additional analysis. As the analytical paradigm changes with the evolution of farm programs, the development of appropriate data and models will improve our understanding of farm program impacts on the behavior and well-being of U.S. farm households, and the agricultural sector.

Suggested Citation

  • Ahearn, Mary Clare & Collender, Robert N. & Diao, Xinshen & Harrington, David H. & Hoppe, Robert A. & Korb, Penelope J. & Makki, Shiva S. & Morehart, Mitchell J. & Roberts, Michael J. & Roe, Terry L. , 2004. "Decoupled Payments In A Changing Policy Setting," Agricultural Economic Reports 33981, United States Department of Agriculture, Economic Research Service.
  • Handle: RePEc:ags:uerser:33981
    DOI: 10.22004/ag.econ.33981
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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. Pavel Ciaian & Edoardo Baldoni & d'Artis Kancs & Dušan Drabik, 2021. "The Capitalization of Agricultural Subsidies into Land Prices," Annual Review of Resource Economics, Annual Reviews, vol. 13(1), pages 17-38, October.
    3. Becker, Anthony D. & Judge, Rebecca P., 2012. "Measuring the Effects of Decoupled Payments on Indica Rice Production Under the 1996 and 2002 Farm Bills," Working Papers 120073, St. Olaf College, Department of Economic.
    4. Anthony D. Becker & Rebecca P. Judge, 2012. "Measuring the Effects of Decoupled Payments on Indica Rice Production Under the 1996 and 2002 Farm Bills," Working Papers 201201, St. Olaf College, Department of Economics.
    5. Anthony Becker & Rebecca Judge, 2014. "Evidence of Distortionary Effects of Decoupled Payments in U.S. Indica Rice Production," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 42(3), pages 265-275, September.
    6. Latruffe, Laure & Davidova, Sophia & Douarin, Elodie & Gorton, Matthew, 2008. "Can the CAP payments facilitate the growth of individual farms in the New Member States post-EU accession?," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43611, European Association of Agricultural Economists.
    7. Yang Zou & Qingbin Wang, 2012. "Impacts of direct government payments on US agriculture: evidence from 1960‐2010 data," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 4(2), pages 188-199, May.
    8. C.S.C. Sekhar, 2021. "Price or income support to farmers? Policy options and implications," IEG Working Papers 420, Institute of Economic Growth.
    9. 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.
    10. Keith H. Coble & J. Corey Miller & M. Darren Hudson, 2008. "Decoupled Farm Payments and Expectations for Base Updating," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(1), pages 27-42.
    11. Callahan, Scott & Ifft, Jennifer & Michaud, Clayton P., 2022. "The impact of countercyclical farm programs on agricultural land values," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322579, Agricultural and Applied Economics Association.
    12. Ziying Jiang & Bo Xu, 2014. "Geographically weighted regression analysis of the spatially varying relationship between farming viability and contributing factors in Ohio," Regional Science Policy & Practice, Wiley Blackwell, vol. 6(1), pages 69-83, March.
    13. Cécile Couharde & Rémi Generoso, 2023. "The financial cost of stabilizing US farm income under climate change," EconomiX Working Papers 2023-18, University of Paris Nanterre, EconomiX.
    14. Ifft, Jennifer & Kuethe, Todd & Morehart, Mitch, 2015. "Does Federal Crop Insurance lead to higher farm debt use? Evidence from the Agricultural Resource Management Survey," Working Papers 250011, Cornell University, Department of Applied Economics and Management.
    15. von Witzke, Harald & Noleppa, Steffen & Schwarz, Gerald, 2010. "Decoupled Payments to EU Farmers, Production, and Trade: An Economic Analysis for Germany," Working Paper Series 59853, Humboldt University Berlin, Department of Agricultural Economics.
    16. Jaclyn D. Kropp & Ani L. Katchova, 2011. "The effects of direct payments on liquidity and repayment capacity of beginning farmers," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 71(3), pages 347-365, November.

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