Hostname: page-component-586b7cd67f-g8jcs Total loading time: 0 Render date: 2024-11-30T22:10:40.802Z Has data issue: false hasContentIssue false
  • English
  • Français

Impacts of Alternative Farm Policies on Rural Communities

Published online by Cambridge University Press:  05 September 2016

J.M. Bowker  and
James W. Richardson
J.M. Bowker
Affiliation:
Nova Scotia Agricultural College
James W. Richardson
Affiliation:
Department of Agricultural Economics, Texas A&M University
Get access Rights & Permissions [Opens in a new window]

Abstract

The purpose of this study was to describe an LP/IO model for evaluating the economic impacts of alternative farm policies on rural communities and demonstrate its capabilities by analyzing the impacts of three farm policies on a rural community in Texas. Results indicate that in the noncrop sector, two groups of industries are most affected by farm policy. The first group relates to production directly (agricultural services, banking and credit, and nondurable manufacturing) and the second group relates to households (retail trade and services). Farm policies which reduce production but increase net returns cause losses for the first group while benefitting the second group. Both groups are made worse off by farm policies which reduce agricultural production and the value of output.

Keywords

farm policyrural communitiesconservation reserve (CRP)mandatory supply controls1985 Farm BillLP/IO methods
Type
Submitted Articles
Information
Journal of Agricultural and Applied Economics , Volume 21 , Issue 2 , December 1989 , pp. 35 - 46
Copyright
Copyright © Southern Agricultural Economics Association 1989

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Beaulieu, L.J., and Mulkey, D.W.. “An Assessment of Community Forces and Agricultural Change.” Paper presented at the S-198 Symposium, “Agricultural Change—Consequences for Southern Farms and Rural Communities.” Atlanta, Georgia, October 1985.Google Scholar
Bowker, J.M. “Assessing the Impacts of the 1985 Farm Bill and Its Alternatives on Rural Economics: The Case of Terry County.” Unpublished Ph.D. Dissertation, Texas A&M University, 1987.Google Scholar
Casey, J.E. “A Regional Adjustment Model to Estimate the Economic Implications of Declining Groundwater in the High Plains.” Unpublished Ph.D. Dissertation, Texas A&M University, 1978.Google Scholar
Czamanski, S. and Malizia, E.E.. “Applicability and Limitations in the Use of National Input-Output Tables for Regional Studies.” Papers, Reg. Sci. Assoc, 23(1969):65–77.Google Scholar
Dillier, J. “Analysis of Three Options to Reduce Farm Support Expenditures.” University of Missouri-Columbia, Food and Agricultural Policy Research Institute, CNFAP #2-89, April 1989.Google Scholar
Economic Report of the President. Washington D.C. U.S. Government Printing Office, 1986.Google Scholar
Everett, H.W. and McCarl, B.A.. “Regional Economic Planning: A Methodology for Integrating Linear Programming and Input-Output Analysis.” Purdue Agri. Exper. Sta., Paper No. 5798, n.d.Google Scholar
Food and Agricultural Policy Research Institute (FAPRI). Comparative Analysis of Selected Policy Options for U.S. Agriculture. University of Missouri-Columbia, Staff Report No. 1-87, February 1987.Google Scholar
Gerloff, D., Richardson, J.W., Smith, E.G., and Knutson, R.D.. “Effects of Debt and Freezing Target Prices After 1990 on Economic Viability of Representative Crop Farms in Texas.” Texas A&M University, Agricultural and Food Policy Center, AFPC Policy Working Paper 89-1,1989.Google Scholar
Gilliland, C. Texas A&M University Real Estate Center, Personal Communication, October 27, 1986.Google Scholar
Goldschmidt, W. As You Sow: Three Studies in the Social Consequences of Agribusiness. Montclair: Allanheld, Osum and Co., Inc., 1978.Google Scholar
Green, B.L. and Carlin, T.A.. “Agricultural Policy, Rural Counties, and Political Geography.” USDA-ERS, Staff Report No. AGES850429, May 1985.Google Scholar
Harris, C.K. and Gilbert, J.. “Large-Scale Farming, Rural Income, and Goldschmidt's Agrarian Thesis.” Rur. Soc, 47(1982): 449–458.Google Scholar
Hayes, M.N. and Olmstead, A.L.. “Farm Size and Community Quality: Arvin and Dinuba Revisited.” Amer. J. Agr. Econ., 66(1984):534–542.CrossRefGoogle Scholar
Heady, E.O. and Sonka, S.. “Farm Size, Rural Community Income, and Consumer Welfare.” Amer. J. Agr. Econ., 56(1974):534–542.CrossRefGoogle Scholar
Henry, M.S. “The Impact of Natural Gas Price Deregulation on the South Carolina Food-Processing Sectors.” So. J. Agr. Econ., 15(1983):41–48.Google Scholar
Henry, M.S. and Bowen, E.. “A Method for Estimating the Value of Water Among Sectors of a Regional Economy.” So. J. Agr. Econ., 13(1981):125–132.Google Scholar
Henry, M.S. Somwaru, A., Schluter, G., and Edmondson, W.. “Some Effects of a Farm Size on the Nonfarm Economy.” No. Cent. J. Agr. Econ., 9(1987): 1–11.Google Scholar
Johnson, T.G. and Kulshreshtha, S.N.. “Exogenizing Agriculture in an Input-Output Model to Estimate Relative Impacts of Different Farm Types.” West J. Agr. Econ., 7(1982):187–198.Google Scholar
Kao, C.S. “Dynamic Impacts of Socio-Economic Development in Rural Texas.” Unpublished Ph.D. Dissertation, Texas A&M University, 1985.Google Scholar
Kletke, D.D. and Ray, D.E.. “Farm Level Analysis of Selected Farm Program Alternatives for Wheat.” Oklahoma State University, Department of Agricultural Economics, AE#8745,1987.Google Scholar
Knutson, R.D. Smith, E.G., Richardson, J.W., Penson, J.B., Hughes, D., Paggi, M.S., Yonkers, R.D., and Chen, D.T.. Policy Alternatives for Modifying the 1985 Farm Bill. Texas Agri. Exper. Sta. Bulletin B-1561, January 1987b.Google Scholar
Lee, J.G. “Risk Implications of the Transition to Dryland Agricultural Production on the Texas High Plains.” Unpublished Ph.D. Dissertation, Texas A&M University, 1987.Google Scholar
Lu, A.Y. “Estimation of Potential GNP in the U.S. Economy: An Application of Input-Output Analysis and Alternative Updating Methods.” Unpublished Ph.D. Dissertation, Texas A&M University, 1983.Google Scholar
McManamin, D.G. and Haring, J.E.. “An Appraisal of Nonsurvey Techniques for Estimating Input-Output Models.” J. Reg. Sci., 14(1974):191–205.CrossRefGoogle Scholar
Michaels, G.H. and Marousek, G.. Economic Impact of Farm Size Alternatives on Rural Communities. University of Idaho, Agri. Exper. Sta. Bulletin No. 582, May 1978.Google Scholar
Miller, R.E. and Blair, P.D.. Input-Output Analysis: Foundations and Extensions. Englewood Cliffs: Prentice-Hall, Inc. 1985.Google Scholar
Mustafa, G. and Jones, L.L.. RIMLOC: Regional Input-Output Models Using Location Quo-tients. PMD-71-4, Texas A&M University, Department of Agricultural Economics, 1971.Google Scholar
Nuckton, C.R. Rochin, R.I., and Gwynn, D.. “Farm Size and Rural Community Welfare: An Interdisciplinary Approach.” Rur. Soc, 47(1982): 32–46.Google Scholar
Richardson, H.W. Input-Output and Regional Economics. Wiltshire: Redwood Press Ltd. 1972.Google Scholar
Shaffer, W.A. and Chu, K.. “Nonsurvey Techniques for Constructing Regional Interindustry Models.” Papers. Reg. Sci. Assoc, 23(1969):83–100.CrossRefGoogle Scholar
Shaffer, R. Salant, P., and Saupe, W.. “Rural Economics and Farming: A Synergistic Link.” Paper presented at the North Central Region Conference, “ Interdependencies of Agriculture and Rural Communities in the 21st Century.” Zion, Illinois, February 1985.Google Scholar
Smith, E.G. “Economic Impact of Current and Alternative Farm Programs on Farm Structure in the Southern High Plains of Texas.” Unpublished Ph.D. Dissertation, Texas A&M University, 1982.Google Scholar
Stoeker, A.L. Wright, M.L., and Pyles, D.A.. An Input-Output Model of the Texas High Plains Economy in 1977. Texas Tech University, College of Agri. Sci. Pub. No. T-l-199, August 1981.Google Scholar
Sumner, D.A. “Structural Consequences of Agricultural Commodity Programs.” Report prepared for the American Enterprise Institute, Washington D.C. 1985b.Google Scholar
Swanson, L.E. and Skees, J.R.. “Examining the Influence of Farm Structure on Local Society Well-Being in the South.” Paper presented at the annual meeting of the American Agricultural Economics Association, Ames, Iowa, 1985.Google Scholar
Texas Agricultural Extension Service. “Crop Enterprise Budgets: Texas South Plains District.” April 1986.Google Scholar
Texas County Statistics. Texas Department of Agriculture, various issues.Google Scholar
Texas Field Crop Statistics. Texas Department of Agriculture, various issues.Google Scholar
Texas Small Grain Statistics. Texas Department of Agriculture, various issues.Google Scholar
U.S. Congress, Office of Technology Assessment (OTA). Technology, Public Policy, and the Changing Structure of American Agriculture: A Special Report for the 1985 Farm Bill.1986.Google Scholar
U.S. Department of Agriculture. Agricultural Prices, 1985 Summary. NASS, ASB, June 1986.Google Scholar
U.S. Department of Agriculture. Agricultural Stabilization and Conservation Service (ASCS). Personal communication Terry County office, April 29,1987.Google Scholar
U.S. Department of Commerce. Bureau of Economic Analysis. Unpublished data tape, 1984a.Google Scholar
U.S. Department of Commerce. 1982 Census of Agriculture. AC82-A-4, September 1984b.Google Scholar
U.S. Department of Labor. Bureau of Labor Statistics. Unpublished data tape, 1986.Google Scholar
U.S. General Accounting Office. Farm Programs: Analysis of Options for Targeting Payments and Crop Loans. GAO/RCED-87-144,1987.Google Scholar
Westhoff, P. “Impacts of the 80-Percent Deficiency Program on Commodity Markets, Producer Returns and Government Program Costs.” University of Missouri-Columbia, Food and Agricultural Policy Research Institute, April 1989.Google Scholar
Young, C.E. Hyberg, B.T., Price, J.M., Huang, W.Y., Lee, C., Sharpies, J.A., and Dvoskin, D.. Economic Effects of Mandatory Production Controls. USDA-ERS, Agri. Econ. Rep. No. 595,1989.Google Scholar