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Another look at the distribution of direct payments: The link with part-time farming


  • Laure Latruffe
  • Stefan Mann


This paper contributes to the research about the relationship between off-farm employment and public support, by taking the issue upside down: does off-farm employment give an advantage to farms regarding the level of public support? Our hypothesis is that a higher degree of decoupling enables part-time farms to capture more easily direct payments than full-time farms. To test this, we compare the largely decoupled direct payment system in Switzerland in 2004, and the rather production-oriented payment system in France in 2003. Results show that Switzerland’s policy favoured farmers with an off-farm employment, while the French direct payment system had the opposite effect.

Suggested Citation

  • Laure Latruffe & Stefan Mann, 2009. "Another look at the distribution of direct payments: The link with part-time farming," Working Papers SMART - LERECO 09-02, INRA UMR SMART-LERECO.
  • Handle: RePEc:rae:wpaper:200902

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    References listed on IDEAS

    1. Chul-Woo Kwon & Peter F. Orazem & Daniel M. Otto, 2006. "Off-farm labor supply responses to permanent and transitory farm income," Agricultural Economics, International Association of Agricultural Economists, vol. 34(1), pages 59-67, January.
    2. Nigel Curry & Erwin Stucki, 1997. "Swiss Agricultural Policy and the Environment: An Example for the Rest of Europe to Follow?," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 40(4), pages 465-482.
    3. Yann Desjeux & Hervé Guyomard & Laure Latruffe, 2007. "Agricultural policies in France: from EU regulation to national design," Post-Print hal-00397354, HAL.
    4. E. Phimister & D. Roberts, 2006. "The Effect of Off-farm Work on the Intensity of Agricultural Production," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 34(4), pages 493-515, August.
    5. Paul Allanson, 2006. "The Redistributive Effects of Agricultural Policy on Scottish Farm Incomes," Journal of Agricultural Economics, Wiley Blackwell, vol. 57(1), pages 117-128, March.
    6. Phimister, Euan & Roberts, Deborah, 2002. "The Effect of Off-farm Work on Production Intensity and Output Structure," Workshop on the Farm Household-Firm Unit: Its Importance in Agriculture and Implications for Statistics, April 12-13, 2002, Wye Campus,Imperial College 15718, International Agricultural Policy Reform and Adjustment Project (IAPRAP).
    7. Schmitt, Gunther, 1989. "Simon Kuznets' "Sectoral Shares in Labor Force": A Different Explanation of His ( I + S)/ A Ratio," American Economic Review, American Economic Association, vol. 79(5), pages 1262-1276, December.
    8. Joe Dewbre, 2006. "The Impact of Coupled and Decoupled Government Subsidies on Off-Farm Labor Participation of U.S. Farm Operators," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(2), pages 393-408.
    9. Teresa Serra & Barry K. Goodwin & Allen M. Featherstone, 2005. "Agricultural Policy Reform and Off-farm Labour Decisions," Journal of Agricultural Economics, Wiley Blackwell, vol. 56(2), pages 271-285.
    10. Stefan Mann & Laure Latruffe & Werner Hediger, 2010. "On labour productivity to deliver private and public goods –the influence of off-farm income," Working Papers SMART - LERECO 10-09, INRA UMR SMART-LERECO.
    11. Mann, Stefan & Wustemann, Henry, 2008. "Multifunctionality and a new focus on externalities," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(1), pages 293-307, February.
    12. Thia Hennessy & Fiona Thorne, 2005. "How Decoupled Are Decoupled Payments? The Evidence from Ireland," Working Papers 0501, Rural Economy and Development Programme,Teagasc.
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    More about this item


    direct payments; distribution; part-time farming; Switzerland; France;

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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