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Do Decoupled Payments Stimulate Production? Estimating the Effect on Program Crop Acreage Using Matching AgEcon
Key, Nigel D.; Roberts, Robert J..
This study uses matching to evaluate the effect of decoupled payments on the acreage response of Iowa farmers who were in business in 1997 and 2002. Using farm-level panel data from the U.S. Agricultural Census, we examine whether farmers receiving high levels of 1997 agricultural payments per acre had a greater increase in program crop acreage between 1997 and 2002 than farmers receiving low levels of payments. The panel data set allows for conditioning current acreage on past individual acreage and operator characteristics. The large and exhaustive sample allows for comparisons across similar farms. The matching methodology avoids distributional and functional form assumptions about the relationship between the treatment and outcome. Results are...
Tipo: Conference Paper or Presentation Palavras-chave: Decoupled payments; Supply response; Government payments; Program crops; Trade policy; Agricultural and Food Policy; Crop Production/Industries; Production Economics.
Ano: 2008 URL: http://purl.umn.edu/6072
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How Much Do Decoupled Payments Affect Production? An Instrumental Variable Approach with Panel Data AgEcon
Weber, Jeremy G.; Key, Nigel D..
Agricultural support payments that cause no or minimal production distortions are exempt from World Trade Organization restrictions. If and how much decoupled payments, such as direct payments in the U.S., affect agricultural production remains an open empirical question with implications for policy. We use multiple years of the Census of Agriculture to estimate the aggregate supply response to changes in direct payments. To identify an exogenous source of variation in payments we exploit a provision of the 2002 Farm Act that departed from previous policy by making oilseeds eligible for direct payments, thus increasing payments to areas that historically produced more oilseeds. Using a sample of ZIP codes that accounts for more than eighty percent of the...
Tipo: Conference Paper or Presentation Palavras-chave: Decoupled payments; Supply response; Government payments; Program crops; Trade policy; Agricultural and Food Policy; Crop Production/Industries; International Relations/Trade.
Ano: 2011 URL: http://purl.umn.edu/103455
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