TY - JOUR
T1 - Farm household income and transfer efficiency
T2 - An evaluation of united states farm program payments
AU - Thompson, Wyatt
AU - Mishra, Ashok K.
AU - Dewbre, Joe
N1 - Funding Information:
Wyatt Thompson is assistant professor, University of Missouri at Columbia. Ashok K. Mishra is associate professor, Department of Agricultural Economics and Agribusiness, Louisiana State University AgCenter, Baton Rouge, Los Angeles. Joe Dewbre is senior economist at the Organization for Economic Cooperation and Development. Views expressed are the authors’ own. Mishra’s time was supported by the USDA Cooperative State Research Education and Extension Service, Hatch Project 0212495 and Louisiana State University Experiment Station Project LAB 93872.
PY - 2009
Y1 - 2009
N2 - There is a need to examine differences in the income transfer efficiency of the US government spending on different farm programs, including counter-cyclical, direct, disaster, and marketing loan. There are several reasons to expect a less than one-to-one relationship between extra program payments and extra income that farm households earn from farming. The estimated coefficients obtained for the exogenous income variable all cluster about one, implying that a one-dollar increase in this category will tend to cause a one-dollar increase in farm household income. Payments completely delinked from production decisions would constitute exogenous income in the same sense as various kinds of income that is added together in creating the unearned income variable. A more statistically viable difference is between farms with and without off-farm income. Disaster payments do not have a discernable effect on income of farms with off-farm earnings.
AB - There is a need to examine differences in the income transfer efficiency of the US government spending on different farm programs, including counter-cyclical, direct, disaster, and marketing loan. There are several reasons to expect a less than one-to-one relationship between extra program payments and extra income that farm households earn from farming. The estimated coefficients obtained for the exogenous income variable all cluster about one, implying that a one-dollar increase in this category will tend to cause a one-dollar increase in farm household income. Payments completely delinked from production decisions would constitute exogenous income in the same sense as various kinds of income that is added together in creating the unearned income variable. A more statistically viable difference is between farms with and without off-farm income. Disaster payments do not have a discernable effect on income of farms with off-farm earnings.
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U2 - 10.1111/j.1467-8276.2009.01300.x
DO - 10.1111/j.1467-8276.2009.01300.x
M3 - Article
AN - SCOPUS:74549184707
SN - 0002-9092
VL - 91
SP - 1296
EP - 1301
JO - American Journal of Agricultural Economics
JF - American Journal of Agricultural Economics
IS - 5
ER -