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Effects of Enhancing NISA on Income Stabilization and Support
Author(s) -
Spriggs John,
Nelson Toby
Publication year - 1997
Publication title -
canadian journal of agricultural economics/revue canadienne d'agroeconomie
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.505
H-Index - 37
eISSN - 1744-7976
pISSN - 0008-3976
DOI - 10.1111/j.1744-7976.1997.tb00197.x
Subject(s) - subsidy , government (linguistics) , income support , economics , matching (statistics) , agriculture , agricultural economics , labour economics , business , macroeconomics , geography , market economy , statistics , mathematics , archaeology , linguistics , philosophy
Dynamic stochastic simulation is used to explore the effects of enhancing Canada's NISA program (a resource‐neutral farm income support program) by increasing the size of contributions matchable by the government. The government matching contributions are a subsidy to farmers, part of which is potentially available as disposable income and part of which must remain in the producer's stabilization account, becoming available only on retirement (or upon exit from farming). It was found that progressive enhancements to the program: (a) yielded diminishing marginal gains in year‐to‐year income stability for farmers; and (b) resulted in a declining proportion of the government contribution being available as disposable income.