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Commodity Payments, Farm Business Survival, and Farm Size Growth AgEcon
Key, Nigel D.; Roberts, Michael J..
In the last 25 years, U.S. crop farms have steadily declined in number and grown in average size, as production has shifted to larger operations. Larger farms tend to receive more commodity program payments because most payments are tied to a farm’s current or historical production, but whether payments have contributed to farm growth is uncertain. This study uses farm-level data from the census of agriculture to determine whether there is a statistical relationship between farm commodity program payments and greater concentration in production. The analysis indicates that, at the regional level, higher commodity program payments per acre are associated with subsequent farm growth. Also, higher payments per acre are associated with higher rates of farm...
Tipo: Report Palavras-chave: Agricultural payments; Farm size; Farm survival; Concentration; Consolidation; Government payments; Commodity programs.; Agribusiness; Agricultural and Food Policy; Community/Rural/Urban Development; Crop Production/Industries; Farm Management.
Ano: 2007 URL: http://purl.umn.edu/55968
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Does Farm Size Really Converge? The Role of Unobserved Farm Efficiency AgEcon
Dolev, Yuval; Kimhi, Ayal.
We analyze the growth of family farms in Israeli cooperative villages between 1981 and 1995, using longitudinal data. We use instrumental variables to account for the endogeneity of initial farm size, and correct for selectivity due to farm survival. We also include a technical efficiency index, derived from the estimation of a stochastic frontier production model, as an explanatory variable. We find that technical efficiency is an important determinant of farm growth, and that not controlling for technical efficiency could seriously bias the results. The size distribution of Israeli family farms is found to be mostly diverging, while without technical efficiency farm growth seemed to be predominantly random.
Tipo: Working or Discussion Paper Palavras-chave: Farm size; Farm growth; Farm survival; Instrumental variables; Sample selection; Technical efficiency; Farm Management; Productivity Analysis; Q12; L25; C34.
Ano: 2008 URL: http://purl.umn.edu/45778
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