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The Influence of Market Returns and Government Payments on Canadian Farmland Values AgEcon
Vyn, Richard J.; Haq, Zahoor Ul; Weerahewa, Jeevika; Meilke, Karl D..
This study estimates the impact of changes in market returns and government payments on farmland values across Canada using data from 1959 to 2009. A recursive simultaneous equation model is estimated to account for the counter-cyclical relationship between market returns and government payments. The results indicate that farmland values are more responsive to changes in market returns than in government payments, but both are important drivers of land values. The elasticity of land values with respect to government payments is lower than has been observed in the United States. In addition, the partial decoupling of government payments has not reduced their impact on farmland values.
Tipo: Working Paper Palavras-chave: Farmland Values; Government Payments; Market Returns JEL Classifications:; Agricultural and Food Policy; Demand and Price Analysis; Land Economics/Use.
Ano: 2012 URL: http://purl.umn.edu/122738
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Impacts of government risk management policies on hedging in futures and options:LPM2 hedge model vs. EU hedge model AgEcon
Zhang, Rui (Carolyn); Houston, Jack E.; Vedenov, Dmitry V.; Barnett, Barry J..
The main objective of this study is to compare the impacts of government payments and crop insurance policies on the use of futures and options measured from a downside risk hedge model with the impacts analyzed by the expected utility (EU) hedge model. Understanding the effects of government-provided risk management tools on the private market risk management tools, such as futures and options, provides value to both crop farmers and policy makers. Comparison of the impacts from the two hedge models shows that crop farmer will hedge less in futures under the LPM2 model than under the EU hedge model. This finding indicates that model misspecification is another reason for the phenomenon that farmers actually hedge less in futures than predicted by the EU...
Tipo: Conference Paper or Presentation Palavras-chave: Down-side Risk; LPM2 Hedge Model; Government Payments; Crop Insurance Policies; Copula Simulation; Conditional Kernel Density; Agricultural Finance.
Ano: 2008 URL: http://purl.umn.edu/37610
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Agricultural Policy and Its Impact on Labor Migration from Agriculture AgEcon
D'Antoni, Jeremy M.; Mishra, Ashok K..
Recent generations of farmers have experienced considerable difficulties earning a consistent living wage to support the needs of themselves and their families. To meet these needs, many farmers and their spouses have increasingly left the agricultural industry to seek employment. Previous studies have found government policies intended to slow the migration of labor from agriculture have little influence. Using an autoregressive distributed lag model and adjusting for non-stationary variables in the labor migration equation, direct government payments were found to have a negative and significant effect on labor migration from agriculture.
Tipo: Working or Discussion Paper Palavras-chave: Farm Labor; Government Payments; Time Series; Labor and Human Capital.
Ano: 2010 URL: http://purl.umn.edu/56426
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