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The impact of decoupled payments on U.S. cropland values
Author(s) -
Ifft Jennifer,
Kuethe Todd,
Morehart Mitch
Publication year - 2015
Publication title -
agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.29
H-Index - 82
eISSN - 1574-0862
pISSN - 0169-5150
DOI - 10.1111/agec.12160
Subject(s) - acre , liberian dollar , payment , direct payments , land values , agricultural economics , value (mathematics) , panel data , economics , business , natural resource economics , land use , econometrics , agricultural science , environmental science , statistics , mathematics , finance , ecology , biology
An extensive literature has shown that various farm programs may influence the value of farmland, but other studies have not examined the cropland price effects of direct, or decoupled, payments separate from countercyclical payments. This study uses nationally representative confidential field‐level panel data with farmer‐reported per‐acre land values. We analyze the impact of decoupled and other farm program payments on farmland values. Using a fixed effects model and controlling for various factors that influence farmland values, we find that an additional dollar of decoupled payments has a large and statistically significant impact on farmland values of about $18 per acre. These results are comparable with similar studies undertaken in Europe.