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Effect of Decoupled Payments on U.S. Agricultural Production AgEcon
Kim, Tae-Hun.
In the current WTO negotiations, the developing and the developed countries take opposite view regarding the criteria for green box subsidies supposed to be decoupled from current production levels and prices. This study investigates whether U.S. PFC and direct payment subsidies are truly decoupled from production or not by modeling the farmers' risk attitudes in a non-structural approach and estimating the effect of decoupled payments on production by the change in risk attitudes. The effect of decoupled payments is not only statistically insignificant on corn and soybean acreage but also very small in magnitude.
Tipo: Journal Article Palavras-chave: Decoupled payments; PFC payments; Risk attitude; Nonstructural approach; Agribusiness; Agricultural and Food Policy; Agricultural Finance; Community/Rural/Urban Development; International Relations/Trade.
Ano: 2008 URL: http://purl.umn.edu/45684
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The measurement of farmers' risk attitudes using a non-structural approach AgEcon
Kim, Tae-Hun.
This study estimates farmers' risk attitudes in Missouri using a non-structural approach over time. The non-structural approach proposed by Antle (1989) allows for multiple outputs and various types of risk faced by farmers and doesn't require specific functional forms for utility or production. This approach can also provide farmers' risk attitudes over time. The results show that farmers' risk attitudes are risk loving and change over time, while farmers' risk attitude is generally assumed to be risk averse and very stable over time. Since this approach has the different definition of risk attitude, the results of this study may be a bit different from previous studies.
Tipo: Journal Article Palavras-chave: Risk attitude; Risk preference; Nonstructural approach; Structural approach; Agribusiness; Community/Rural/Urban Development; Farm Management.
Ano: 2008 URL: http://purl.umn.edu/45653
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