The decoupling of farm programs: Revisiting the wealth effect

American Journal of Agricultural Economics

Volumn 92, Issue 3, 2010, Pages 836-848

  Femenia, Fabienne ^a   Gohin, Alexandre ^a   Carpentier, Alain ^a  

^a CEMAGREF   (France)

Author keywords

Agricultural policy; Decoupling; Wealth effect

Indexed keywords

AGRICULTURAL POLICY; AGRICULTURAL PRODUCTION; FARMING SYSTEM; HOUSEHOLD INCOME; LANDHOLDING; POLICY REFORM;

EID: 77952965779     PISSN: 00029092     EISSN: 14678276     Source Type: Journal    
DOI: 10.1093/ajae/aap029     Document Type: Article

References (43)

1. Abler, D. G. 2001. Elasticities of Substitution and Factor Supply in Canadian, Mexican and U.S. Agriculture. In OECD, ed., Market Effects of Crop Support Measures, Annex 2. Paris: OECD.
2. Andersen, S.,G.W. Harrison, M. I. Lau, and E. E. Rutström. 2008. Eliciting Risk andTime Preferences. Econometrica 76: 583-618.
3. Anton, J., and C. Le Mouël. 2004. Do Counter- Cyclical Payments in the 2002USFarmAct Create Incentive to Produce? Agricultural Economics 31(2-3): 277-284
4. Anton, J., and C. Le Mouël. 2002. Risk Effects of Crop Support Measures. Available at https://www.gtap.agecon.purdue.edu/ resources/download/ 1036.pdf (accessed on December 23, 2009).
5. Anton, J., and C. Giner. 2005. Can Risk Reducing Policies Reduce Farmer's Risk and Improve Their Welfare? Paper presented at the 11th Congress of the European Association of Agricultural Economists, Copenhagen, Denmark,August 24-27.
6. Benjamin, D. 1992. Household Composition, Labor Markets, and Labor Demand: Testing for Separation in Agricultural Household Models. Econometrica 60(2): 287-322.
7. Bhaskar, A., and J. Beghin. 2007a. Decoupled Farm Payments and the Role of Base Updating under Uncertainty. Working paper 07026, Iowa State University, Department of Economics.
8. Bhaskar, A., and J. Beghin. 2007b. How Coupled are Decoupled Farm Payments? A Review of Coupling Mechanisms and the Evidence. Working paper 07021, Iowa State University, Department of Economics.
9. Bontems, P., and A. Thomas. 2000. Information Value and Risk Premium in Agricultural Production: The Case of Split Nitrogen Application for Corn. American Journal of Agricultural Economics 82: 59-70.
10. Burfisher, M., S. Robinson, and K. Thierfelder. 2000. NorthAmerican Farm Programs and the WTO. American Journal of Agricultural Economics 82(3): 768-774
11. Chambers, R. G. 1995. The Incidence of Agricultural Policies. Journal of Public Economics 57(2): 317-335
12. Chau, N. H., and H. de Gorter. 2005. Disentangling the Consequences of Direct Payment Schemes in Agriculture on Fixed Costs, Exit Decisions, and Output. American Journal of Agricultural Economics 87(5): 1174-1181
13. Chavas, J. P., and A. Thomas. 1999.A Dynamic Analysis of Land Prices. American Journal of Agricultural Economics 81(4): 772-784
14. Chavas, J. P. 2004. Risk Analysis in Theory and Practice. New York, USA: Elsevier Academic Press.
15. Courleux, F., H. Guyomard, F. Levert, and L. Piet. 2007. How the EU Single Farm Payment Should be Modelled: Lump-Sum Transfers, Area Payments or ⋯ Something Else? Paper presented at the INRA - SFER conference, Paris, France, December 13-14.
16. De Fontnouvelle, P., and S. H. Lence. 2002. Transaction Costs and the Present Value Puzzle of Farmland Prices. Southern Economic Journal 68(3): 549-565
17. Duffy, P. A., C. R Taylor, D. L. Cain, and G. J. Young. 1994. The Economic Value of Farm Program Base. Land Economics 70(3): 318-329
18. Erickson, K.W., C. B. Moss, and A. K. Mishra. 2004. Rates of Return in the Farm and Nonfarm Sectors: How Do They Compare? Journal of Agricultural and Applied Economics 36(3): 789-795
19. Foreman, L. 2006. Characteristics and Production Costs of U.S. Corn Farms, 2001. EIB-7,U.S. Dept of Agriculture,Economic Research Service, Economic Information Bulletin Number 7, February 2006.
20. Gollier, C. 2001. The Economics of Risk and Time. Cambridge, MA:The MIT Press.
21. Goodwin, B. K., A. K. Mishra, and F. Ortalo- Magné. 2005. Landowner's Riches: The Distribution of Agricultural Subsidies. Working paper.
22. Goodwin, B. K., and A. K. Mishra. 2006. Are Decoupled Farm Program Payments Really Decoupled? An Empirical Evaluation. American Journal of Agricultural Economics 88(1): 73-89.
23. Hennessy, D. A. 1998. The Production Effects of Agricultural Income Support Policies under Uncertainty. American Journal of Agricultural Economics 80(1): 46-57.
24. Hertel, T. W. 1989. Negotiating Reductions in Agricultural Support: Implications of Technology and Factor Mobility. American Journal of Agricultural Economics 71(3): 559-573
25. Holt,C.A.,and S. K. Laury. 2002. RiskAversion and Incentive Effects.American Economic Review 92: 1644-1655
26. Johnson, B. B. 2002. Farmland Ownership Transfer: Patterns and Implications. Working paper, Agricultural Economics Departement, Unversity of Nebraska- Lincoln.
27. Just, R.D. 2006. Calibrating theWealth Effects of Decoupled Payments: Does DecreasingAbsolute RiskAversion Matter? Paper presented at the Annual Meetings of SCC- 76 Economics and Management of Risk in Agriculture and Natural Resources,Myrtle Beach, SC, March 16-18.
28. Laffont, J.-J. 1989. The Economics of Uncertainty and Information. Cambridge, MA: The MIT Press.
29. Lamb,R. L.,and J. Henderson. 2000. FAIRAct Implications for Land Values in the Corn Belt. Review of Agricultural Economics 22(1): 102-119
30. Lin, W., and R. Dismukes. 2007. Supply Response under Risk: Implications for Counter-Cyclical Payments' Production Impact. Review of Agricultural Economics 29(1): 64-86.
31. Lin, W., P. Westcott, R. Skinner, S. Sanford, and D. De La Torre Ugarte. 2000. Supply Response under the 1996 Farm Act and Implications for the U.S. Field Crops Sector. USDA-ERSTechnical Paper 1888.
32. McIntosh,C. R.,J. F. Shogren,and E. Dohlman. 2007. Supply Response to Countercyclical Payments and Base Acre Updating under Uncertainty: An Experimental Study. American Journal of Agricultural Economics 89(4): 1046-1057
33. Meyer, J. 2002. Expected Utility as a Paradigm for Decision Making in Agriculture. In R.E. Just and R.D. Pope (eds), A Comprehensive Assessment of the Role of Risk in U.S. Agriculture. London: Kluwer Academic Publishers, pp. 3-20.
34. Mishra, A. K., H. S. El-Osta, M. J. Morehart, J. D. Johnson, and J. W. Hopkins. 2002. Income, Wealth, and the Economic Well-being of Farm Households. Farm Sector Performance and Well-Being Branch, Resource Economics Division, Economic Research Service, U.S. Department of Agriculture. Agricultural Economic Report No. 812.
35. Moledina, A. A., T. L. Roe, and M. Shane. 2004. Measuring Commodity PriceVolatility and the Welfare Consequences of Eliminating Volatility. Paper Presented at the American Agricultural Economics Association Annual Meeting, Denver,CO, August 1-4.
36. Mullen, K., N. Chau, H. de Gorter, and B. Gloy. 2001. The Risk Reduction Effects of Direct Payments on U.S. Wheat Production. Working Paper.
37. OECD. 2004. Risk Effects of PSE Crop Measures. Paris: OECD.
38. Phimister, E. 1995. Farm Household Production in the Presence of Restrictions on Debt: Theory and Policy Implications. Journal of Agricultural Economics 46(3): 371-380
39. Sckokai, P., and J. Anton. 2005. The Degree of Decoupling of Area Payments for Arable Crops in the European Union. American Journal of Agricultural Economics 87(5): 1220-1228
40. Sckokai, P., and D. Moro. 2006. Modeling the Reforms of the Common Agricultural Policy for Arable Crops under Uncertainty. American Journal of Agricultural Economics 88(1): 43-56.
41. Serra, T., D. Zilberman, B. Goodwin, and A. Featherstone. 2006. Effects of Decoupling on the Mean and Variability of Output. European Review of Agricultural Economics 33(3): 269-288
42. Serra, T., D. Zilberman, and J. M. Gil. 2007. Farms Technical Inefficiencies in the Presence of Government Programs. Paper presented at the American Agricultural Economics Association Annual Meeting, Portland, OR, July 29-August 1.
43. Young, C., and P. Wescott. 2000. How Decoupled is U.S. Agricultural Support for Major Crops? American Journal of Agricultural Economics 82(3): 762-767