We estimate the impact of direct payments under the 2002 Farm Act on the credit terms of farm operators, specifically the interest rate on short-term operating loans. In the analysis, we control for farm financial characteristic, farm operator characteristics, and other factors. Using data from...

Agricultural households adjust to policy changes through market mechanisms by altering: their production mix, labor input, and on- and off-farm investments. Because of the significant heterogeneity among farms in the US agricultural sector, various types of farm households respond to the same...

We estimate the impacts of various types of government payments to U.S. agriculture on different components of farm household consumption. Using 2003 to 2005 data from the Agricultural Resource Management Survey (ARMS), we show that marginal rates of consumption differ by consumption category...

We use laboratory market experiments to assess the impact of asymmetric knowledge of a per-unit subsidy and the effect of a decoupled annual income subsidy on factor market outcomes. Results indicate that when the subsidy is tied to the factor as a per-unit subsidy, regardless of full or...

U.S. decoupled direct payments, paid to farm operators based on historic yields and base acreage under the 2002 Farm Bill, may alter a farmer’s access to credit or his ability to meet debt servicing obligations. Data from the U.S. Department of Agriculture (USDA) Agricultural Resource...

We analyze the impacts of agricultural subsidies on farm-level production decisions and input use under price, yield, and policy uncertainty for a risk-averse farmer. Using U.S. farm-level data and weighted ordinary least squares, we find that decoupled payments had little impact on agricultural...

Prices for prime farmland have increased significantly in recent years. But, is the dramatic increase the result of a speculative bubble or is it consistent with market fundamentals with increases driven by growing global demand and recent changes to U.S. agricultural and energy policies? This...

The use of agricultural decoupled support has increased as World Trade Organization (WTO) member nations implement less trade distortive policies. However, the true production effects of these policies are still unclear. We show how the exclusion restrictions of U.S. direct payments, namely, the...