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Is There Supply Distortion In The Green Box? An Acreage Response Approach AgEcon
Bakhshi, Samira; Kerr, William A..
The shift of the farm subsidies toward programs classified as being decoupled income supports in the WTO’s URAA raises the question of their true impact on production and trade. In this study, we measured the acreage effects of the Canadian whole farm programs under uncertainty. Based on the theoretical discussions regarding the role of the insurance effect in acreage decisions, we extend the theoretical restrictions examined by Chavas and Holt (1990)which enables us to include this effect in our model specification. Hence, we modified the expected utility maximization framework (under the hypothesis that farmers are risk averse) developed by Chavas and Holt (1990) and derived three distinct effects: market effects, the wealth effect, and the insurance...
Tipo: Working or Discussion Paper Palavras-chave: WTO; Decoupled; Green box; Area; Production; Agricultural and Food Policy; Crop Production/Industries; International Relations/Trade; Production Economics.
Ano: 2009 URL: http://purl.umn.edu/51093
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How Coupled Are Decoupled Farm Payments? A Review of the Evidence AgEcon
Bhaskar, Arathi; Beghin, John C..
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 a 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.
Tipo: Journal Article Palavras-chave: Agricultural policy; Decoupled; Decoupling; Farm payment programs; Program subsidies; Support; Agricultural and Food Policy; Agricultural Finance.
Ano: 2009 URL: http://purl.umn.edu/50077
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The Economics of Generic Income Stabalization Schemes AgEcon
Chen, Kevin Z.; Meilke, Karl D.; Turvey, Calum G..
Generic income stabilization schemes, which resemble an actual NISA policy adopted recently in Canada, encourage farmers to set aside funds in high income year for use in low income years through a formal procedure. Their economic effects are investigated using the prudent farm household model. The effects of generic income stabilization schemes are hinged on the interaction between generic stabilization schemes and precautionary saving. It is also found that the designs of generic income stabilization schemes are fundamentally important for their potential supply effects. Conditions for characterizing various generic income stabilization schemes as either production neutral or decoupled are derived. Generic income stabilization scheme operated as a pure...
Tipo: Working Paper Palavras-chave: Generic income stabilization; NISA; Prudent farm household model; Consumption; Production neutrality; Decoupled; And agricultural policy.; Financial Economics; Public Economics.
Ano: 1996 URL: http://purl.umn.edu/123558
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