Effect of Decoupled Payments on U.S. Agricultural Production

In the current WTO negotiations, the developing and the developed countries take opposite view regarding the criteria for green box subsidies supposed to be decoupled from current production levels and prices. This study investigates whether U.S. PFC and direct payment subsidies are truly decoupled from production or not by modeling the farmers' risk attitudes in a non-structural approach and estimating the effect of decoupled payments on production by the change in risk attitudes. The effect of decoupled payments is not only statistically insignificant on corn and soybean acreage but also very small in magnitude.


Issue Date:
Nov 10 2008
Publication Type:
Journal Article
DOI and Other Identifiers:
ISSN 1229-8263 (Other)
PURL Identifier:
http://purl.umn.edu/45684
Published in:
Journal of Rural Development/Nongchon-Gyeongje, Volume 31, Issue 5
Page range:
67-86
Total Pages:
20




 Record created 2017-04-01, last modified 2017-08-25

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