Hostname: page-component-cd9895bd7-fscjk Total loading time: 0 Render date: 2024-12-26T18:35:37.424Z Has data issue: false hasContentIssue false

Impact of Program Payments on Time Allocation and Farm Household Income

Published online by Cambridge University Press:  28 April 2015

Joe Dewbre
Affiliation:
Agricultural Directorate of the Organization for Economic Cooperation and Development
Ashok K. Mishra
Affiliation:
Department of Agricultural Economics and Agribusiness, Louisiana State University, Baton Rouge, LA

Abstract

Using a model of farm household resource allocation and data from the USDA-ERS Agricultural Resource Management Survey (ARMS), this study compares the effects of various categories of farm program payments on time allocation by farm operators and spouses. Results suggest that agricultural market transition payments (AMTA) increase leisure hours of both farm operators and spouses. Loan deficiency payments (LDP) and payments that combine market loan assistance (MLA) and disaster payments are shown to reduce leisure. The study also finds that AMTA payments exhibit a much higher degree of income transfer efficiency than the LDP and MLA payments.

Type
Research Article
Copyright
Copyright © Southern Agricultural Economics Association 2007

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

Ahearn, M.C., El-Osta, H., and Dewbre, J.. “The Impact of Coupled and Decoupled Government Subsidies on Off-Farm Labor Participation of U.S. Farm Operators.American Journal of Agricultural Economics 88(May 1993):149-56.Google Scholar
Alston, J.M., and Hurd, B.H.. “Some Neglected Social Costs of Government Spending in Farm Programs.” American Journal of Agricultural Economics 75(November 1993):149-56.Google Scholar
Barnard, C.H., Whittaker, G., Wesenberger, D., and Ahearn, M.. “Evidence of Capitalization of Direct Government Payments into U.S. Cropland Values.American Journal of Agricultural Economics 79(December 1997):1642-50.CrossRefGoogle Scholar
Barnard, C.H., Nehring, R., Ryan, J., Collender, R., and Quinby, B.. “Higher Cropland Value from Farm Program Payments: Who Gains?Agricultural Outlook, November 2001:2630.Google Scholar
Deaton, A., and Muellbauer, J.. Economics and Consumer Behaviour. Cambridge: Cambridge University Press, 1993.Google Scholar
Dewbre, J.H., Anton, J., and Thompson, W.. “The Transfer Efficiency and Trade Effects of Direct Payments.American Journal of Agricultural Economics 83(December 2001):1204-14.CrossRefGoogle Scholar
Dubman, R.W.Variance Estimation with US-DA’s Farm Costs and Returns Surveys and Agricultural Resource Management Study Survey.” Washington, DC: Economic Research Service, U.S. Department of Agriculture, AGES 00-01, 2000.Google Scholar
El-Osta, H., and Ahearn, M.. Estimating the Opportunity Cost of Unpaid Farm Labor for US Farm Operators. Washington, DC: U.S. Department, Economic Research Service Technical Bulletin 1848, 1996.Google Scholar
El-Osta, H., Mishra, A., and Ahearn, M.. “Labor Supply by Farm Operators under ‘Decoupled’ Farm Program Payments.Review of Economics of Households 2(June 2004):367-85.CrossRefGoogle Scholar
Goodwin, B.K., Mishra, A.K., and Magne, F. Ortal. “What’s Wrong with Our Models of Agricultural Land Values?American Journal of Agricultural Economics 85(August 2003):744–52.CrossRefGoogle Scholar
Hallberg, M., Findeis, J. and Lass, D., eds. Multiple Job Holding among Farm Families. Ames: Iowa State University Press, 1991.Google Scholar
Hensher, D.A., and Johnson, L.W.. Applied Discrete Choice Modelling. London: Croom Helm, 1981.Google Scholar
Hoppe, R.A.Structural and Financial Characteristics of U.S. Farms, 1996.” 21st Annual Family Farm Report to the Congress. Washington, DC: Economic Research Service, U.S. Department of Agriculture, AIB #735, 2000.Google Scholar
Huffman, W.Farm and Off-Farm Work Decisions: The Role of Human Capital.” Review of Economics of Statistics 62(February 1980):1423.CrossRefGoogle Scholar
Lass, D.J., and Gempesaw, C.M.. “The Supply of Off-Farm Labor: A Random Coefficient Approach.American Journal of Agricultural Economics 74(May 1992):400-11.CrossRefGoogle Scholar
Lee, J.Allocating Farm Resources between Farm and Non-Farm Uses.American Journal of Agricultural Economics 47(February 1965):8392.Google Scholar
Mishra, A.K., El-Osta, H., Morehart, M., Johnson, J., and Hopkins, J.. “Income, Wealth and Weil-Being of Farm Households.” Washington, DC: Economic Research Service, U.S. Department of Agriculture, Agricultural Economics Report 812, July 2002.Google Scholar
Mishra, A.K., and Goodwin, B.K.. “Farm Income Variability and the Supply of Off-Farm Labor.American Journal of Agricultural Economics 79(August 1997):880-87.CrossRefGoogle Scholar
Mishra, A.K., and Holthausen, D.M.. “Effect of Farm Income and Off-Farm Wage Variability on Off-Farm Labor Supply.” Agricultural and Resource Economics Review 31 (October 2002):187-99.CrossRefGoogle Scholar
Organization for Economic Cooperation and Development. “Farm Household Incomes: Issues and Policy Responses.” Paris: OECD, 2002.Google Scholar
Schmitt, G.H.What Do Agricultural Income and Productivity Measurements Really Mean?Agricultural Economics 2(October 1988):139-57.CrossRefGoogle Scholar
Schmitz, A., and Vercammen, J.. “Efficiency of Farm Programs and Their Trade-Distorting Effect.” GATT Negotiations and the Political Economy of Policy Reform. Rauser, G., ed. Berlin: Springer, 1995.Google Scholar
Singh, I., Squire, L., and Strauss, J., eds. Agricultural Household Models. Baltimore: Johns Hopkins University Press for the World Bank, 1986.Google Scholar
Sumner, D.A.The Off-Farm Labor Supply of Farmers.American Journal of Agricultural Economics 64(August 1982):499509.CrossRefGoogle Scholar
Taylor, J.E., and Adelman, I.. “Agricultural Household Models: Genesis, Evolution and Extensions.” Review of Economics of the Household 1(January 2003):3358.CrossRefGoogle Scholar
U.S. Department of Agriculture-Economic Research Service. Internet site: www.ers.usda.gov/ Briefing/ARMS (Accessed April 29, 2005).Google Scholar
U.S. Department of Agriculture-Economic Research Service. Agriculture Resource Management Survey (ARMS) 1998, 1999, 2000, and 2001. Washington, DC: USDA-ERS.Google Scholar