Do direct payments have intertemporal effects on U.S. agriculture?
The question whether production flexibility payments to farmers are likely to be minimally trade distorting is considered in an inter-temporal and economy wide context. Our contribution lies in showing the circumstances, over time, under which a minimally trade distorting result is likely to obtain....
| Autores principales: | , , |
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| Formato: | Capítulo de libro |
| Lenguaje: | Inglés |
| Publicado: |
Iowa State University Press
2004
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/157555 |
| _version_ | 1855523278029848576 |
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| author | Roe, Terry L. Somwaru, Agapi Diao, Xinshen |
| author_browse | Diao, Xinshen Roe, Terry L. Somwaru, Agapi |
| author_facet | Roe, Terry L. Somwaru, Agapi Diao, Xinshen |
| author_sort | Roe, Terry L. |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | The question whether production flexibility payments to farmers are likely to be minimally trade distorting is considered in an inter-temporal and economy wide context. Our contribution lies in showing the circumstances, over time, under which a minimally trade distorting result is likely to obtain. If agricultural capital markets are complete, we find that payments have long run effects on land values and land rental rates, but they have no effect on production. If capital markets are not complete, we find production effects, but they are small (0.2 percent) in the short run and disappear in the long-run. The only permanent effects are on land rental rates and land values that increase by about 10 percent in the short run tapering off to slightly above 8 percent in the long run. |
| format | Book Chapter |
| id | CGSpace157555 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2004 |
| publishDateRange | 2004 |
| publishDateSort | 2004 |
| publisher | Iowa State University Press |
| publisherStr | Iowa State University Press |
| record_format | dspace |
| spelling | CGSpace1575552024-11-14T11:36:41Z Do direct payments have intertemporal effects on U.S. agriculture? Roe, Terry L. Somwaru, Agapi Diao, Xinshen capital market agricultural growth subsidies agricultural development The question whether production flexibility payments to farmers are likely to be minimally trade distorting is considered in an inter-temporal and economy wide context. Our contribution lies in showing the circumstances, over time, under which a minimally trade distorting result is likely to obtain. If agricultural capital markets are complete, we find that payments have long run effects on land values and land rental rates, but they have no effect on production. If capital markets are not complete, we find production effects, but they are small (0.2 percent) in the short run and disappear in the long-run. The only permanent effects are on land rental rates and land values that increase by about 10 percent in the short run tapering off to slightly above 8 percent in the long run. 2004 2024-10-24T12:50:45Z 2024-10-24T12:50:45Z Book Chapter https://hdl.handle.net/10568/157555 en Limited Access Iowa State University Press Roe, Terry L.; Somwaru, Agapi; Diao, Xinshen. 2004. Do direct payments have intertemporal effects on U.S. agriculture? In Moss, Charles and Andrew Schmitz (eds.) 2004. Government Policy and Farmland Markets: The Maintenance of Farmer Wealth. |
| spellingShingle | capital market agricultural growth subsidies agricultural development Roe, Terry L. Somwaru, Agapi Diao, Xinshen Do direct payments have intertemporal effects on U.S. agriculture? |
| title | Do direct payments have intertemporal effects on U.S. agriculture? |
| title_full | Do direct payments have intertemporal effects on U.S. agriculture? |
| title_fullStr | Do direct payments have intertemporal effects on U.S. agriculture? |
| title_full_unstemmed | Do direct payments have intertemporal effects on U.S. agriculture? |
| title_short | Do direct payments have intertemporal effects on U.S. agriculture? |
| title_sort | do direct payments have intertemporal effects on u s agriculture |
| topic | capital market agricultural growth subsidies agricultural development |
| url | https://hdl.handle.net/10568/157555 |
| work_keys_str_mv | AT roeterryl dodirectpaymentshaveintertemporaleffectsonusagriculture AT somwaruagapi dodirectpaymentshaveintertemporaleffectsonusagriculture AT diaoxinshen dodirectpaymentshaveintertemporaleffectsonusagriculture |