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The Evolution of Farm Programs and Their Contribution to Agricultural Land Values
Author(s) -
Shaik Saleem,
Helmers Glenn A.,
Atwood Joseph A.
Publication year - 2005
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.1111/j.1467-8276.2005.00806.x
Subject(s) - state (computer science) , session (web analytics) , land grant , citation , principal (computer security) , agriculture , agricultural experiment station , political science , library science , agricultural economics , history , law , economics , public administration , archaeology , business , algorithm , advertising , computer science , operating system
The economic environment of agricultural producers has been influenced by formal U.S. agricultural policy for more than seventy years. Among the first pieces of New Deal legislation proposed by incoming President Franklin D. Roosevelt, was a farm program designed to address declines in crop prices and net farm income. Key features of the Agriculture Act of 1933 included mandatory price support for specified commodities, direct subsidy payments to farmers, and supply controls. Farm programs, once viewed as temporary and supplementary to agricultural earnings, are increasingly viewed as permanent and of major proportion. Gardner examined the relationships between U.S. farm commodity programs and U.S. farm structure, while others (see Sumner for concept, evidence, and implications) have examined farm programs and specific crops. Gardner (2002), and Weersink et al. analyzed the effects of farm program programs upon land values. These studies examined various aspects of agricultural policy including whether farm program payments have enhanced land prices and landowner wealth rather than the welfare of producers. While it would seem logical that revenueenhancing farm programs would increase land values, reliably estimating the magnitudes of farm program effects upon land values is an empirically challenging task. Both statistical and budgeting-based methodologies have been used to estimate the share of land prices generated by farm program payments. Statistically based studies are complicated by the fact that both real per acre crop receipts