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Do counter-cyclical payments in the 2002 US Farm Act create incentives to produce?

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  • Anton, Jesus
  • Mouel, Chantal Le

Abstract

Les résultats analytiques obtenus par certains auteurs, tels que Hennessy (1998) par exemple, suggèrent que des paiements contra-cycliques, même découplés en univers certain, génèrent des incitations à produire, via leurs effets sur le risque auquel font face les producteurs. L'article développe un cadre analytique permettant d'analyser les incitations à produire, liées à leurs effets sur le risque, de programmes tels que les paiements compensatoires au titre de prêts (LDP) et les paiements contra-cycliques (CCP) de la loi agricole américaine de 2002 (FSRI Act). L'effet des CCP en termes de réduction du risque auquel font face les producteurs est moindre que celui des LDP car les premiers sont versés sur la base de quantités produites fixes. Les LDP agissent directement sur la variance des distributions des prix aux producteurs tandis que les CCP jouent sur la covariance entre les distributions des paiements et les distributions des prix aux producteurs. La méthode proposée par Chavas et Holt (1990) est utilisée pour calculer la matrice de variance-covariance des distributions des prix aux producteurs, tronquées consécutivement à l'application de la loi agricole américaine de 2002. Puis les primes de risque sont calculées. Les résultats empiriques indiquent que les incitations à produire induites par les CCP, via leurs effets en termes de réduction du risque, sont non négligeables et qu'elles ne disparaissent pas lorsque les niveaux de production observés sont supérieurs aux niveaux de référence sur la base desquels ils sont versés.
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  • Anton, Jesus & Mouel, Chantal Le, 2004. "Do counter-cyclical payments in the 2002 US Farm Act create incentives to produce?," Agricultural Economics, Blackwell, vol. 31(2-3), pages 277-284, December.
    • Handle: RePEc:eee:agecon:v:31:y:2004:i:2-3:p:277-284
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    1. Bhaskar, Arathi & Beghin, John C., 2009. "How Coupled Are Decoupled Farm Payments? A Review of the Evidence," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 34(1), pages 1-24, April.
    2. Urban, Kirsten & Jensen, Hans Grinsted & Brockmeier, Martina, 2012. "How Decoupled is the SFP in GTAP: Using a Sensitivity Analysis to Uncover the Degree of Coupling," Conference papers 332173, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    3. Cooper, Joseph, 2009. "Payments under the Average Crop Revenue Program: Implications for Government Costs and Producer Preferences," Agricultural and Resource Economics Review, Cambridge University Press, vol. 38(1), pages 49-64, April.
    4. Vincent H. Smith & Joseph W. Glauber, 2020. "Trade, policy, and food security," Agricultural Economics, International Association of Agricultural Economists, vol. 51(1), pages 159-171, January.
    5. Fabienne Femenia & Alexandre Gohin & Alain Carpentier, 2010. "The Decoupling of Farm Programs: Revisiting the Wealth Effect," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(3), pages 836-848.
    6. O'Donoghue, Erik J. & Whitaker, James B., 2006. "How distorting are direct payments?," 2006 Annual meeting, July 23-26, Long Beach, CA 21247, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Mary, Sebastien & Santini, Fabien & Boulanger, Pierre, 2013. "An Ex-Ante Assessment of CAP Income Stabilisation Payments using a Farm Household Model," 87th Annual Conference, April 8-10, 2013, Warwick University, Coventry, UK 158860, Agricultural Economics Society.
    8. Sharma, S.K., 2014. "Counter-Cyclical Payments under Doha Negotiations: An Analysis of Agricultural Subsidy Programme of the US," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 27(2).
    9. Cooper, Joseph C., 2009. "Economic Aspects of Revenue-Based Commodity Support," Economic Research Report 55838, United States Department of Agriculture, Economic Research Service.
    10. Cooper, Joseph C., 2008. "A Revenue-Based Alternative to the Counter-Cyclical Payment Program," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6197, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Weerahewa, Jeevika & Meilke, Karl D. & Vyn, Richard J. & Haq, Zahoor Ul, 2008. "The Determinants of Farmland Values in Canada," Working Papers 43461, Canadian Agricultural Trade Policy Research Network.
    12. Bhaskar, Arathi & Beghin, John C., 2007. "How Coupled are Decoupled Farm Payments? A Review of Coupling Mechanisms and the Evidence," Working Papers 7347, Iowa State University, Department of Economics.
    13. Andreas Wagener & Juliane Zenker, 2021. "Decoupled but Not Neutral: The Effects of Counter‐Cyclical Cash Transfers on Investment and Incomes in Rural Thailand†," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(5), pages 1637-1660, October.
    14. Yinhao Wu & Enru Wang & Changhong Miao, 2019. "Fertilizer Use in China: The Role of Agricultural Support Policies," Sustainability, MDPI, vol. 11(16), pages 1-23, August.
    15. Cooper, Joseph C., 2009. "ACRE: A Revenue-Based Alternative to Price-Based Commodity Payment Programs," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49180, Agricultural and Applied Economics Association.
    16. Glauber, Joseph W. & Effland, Anne, 2016. "United States agricultural policy: Its evolution and impact:," IFPRI discussion papers 1543, International Food Policy Research Institute (IFPRI).
    17. Anton, Jesus & Giner, Celine, 2005. "Can Risk Reducing Policies Reduce Farmer's Risk and Improve Their Welfare?," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24578, European Association of Agricultural Economists.
    18. Serra, Teresa & Goodwin, Barry K. & Featherstone, Allen M., 2011. "Risk behavior in the presence of government programs," Journal of Econometrics, Elsevier, vol. 162(1), pages 18-24, May.

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