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An impact of direct payments on production decisions in agriculture

Author

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  • V. Bečvářová

    (Mendel University of Agriculture and Forestry, Brno, Czech Republic)

Abstract

The paper deals with the employment of decoupled direct payments as the model of targeted lump-sum financial transfers to the farmers. It considers whether decoupled payments may alter producers' resource allocation over time and lead to effects on production. Decisive topics of influence through which decoupled payments as an instrument of income redistribution could affect production through recipient' decisions in both short and long time horizons are bringing to the attention as follows: wealth and investment effects, sector consolidation and payment basis effects in the framework of agricultural policy.

Suggested Citation

  • V. Bečvářová, 2007. "An impact of direct payments on production decisions in agriculture," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 53(7), pages 325-332.
    • Handle: RePEc:caa:jnlage:v:53:y:2007:i:7:id:1156-agricecon
    DOI: 10.17221/1156-AGRICECON
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    References listed on IDEAS

    as
    1. Nancy H. Chau & Harry de Gorter, 2005. "Disentangling the Consequences of Direct Payment Schemes in Agriculture on Fixed Costs, Exit Decisions, and Output," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(5), pages 1174-1181.
    2. Boehlje, Michael & Doering, Otto C., III, 2000. "Farm Policy In An Industrialized Agriculture," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 18(01), pages 1-8, March.
    3. Boehlje, Michael & Akridge, Jay T. & Kalaitzandonakes, Nicholas G., 2002. "Preparing For Success In The Agribusiness Market Place," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 20(01), pages 1-9.
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