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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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Do Government Payments Influence Farm Size and Survival? AgEcon
Key, Nigel D.; Roberts, Michael J..
Using farm-level data from the 1987, 1992, and 1997 Census of Agriculture, this study estimates what effect agricultural payments have had on the likelihood of farm business survival and on farm size. The unique panel data set permits conditioning current farm size on past farm size, which removes much of the individual heterogeneity of farms that could be spuriously correlated with payment levels. Results indicate that between consecutive censuses, past per acre payments have a significant positive effect on farm business survival and a small yet significant influence on the size of continuing farms.
Tipo: Journal Article Palavras-chave: Agricultural payments; Exit rate; Farm size; Growth; Payment limits; Survival; Agricultural and Food Policy; Agricultural Finance; Farm Management.
Ano: 2007 URL: http://purl.umn.edu/8645
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