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Government policies and farm size: does the size concept matter?

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  • Jet Yee
  • Mary Clare Ahearn

Abstract

This paper employs a panel data set of 48 states from 1960 to 1996 to investigate the relationships of government policies (public agricultural research and development (R&D), extension, and government commodity program payments) to changes in farm size. Five different farm size measures are considered (acres operated per farm, real land and building value per farm, real cash receipts per farm, real cash receipts plus government payments per farm, and an imputed measure of the real capital service flow per farm) in order to make a more general statement about the impacts of government policies on farm size. It was found that the impacts of government policies on farm size are in general robust to the measure of farm size considered. More specifically, it was found that R&D, extension, and government payments all have positive effects on farm size.

Suggested Citation

  • Jet Yee & Mary Clare Ahearn, 2005. "Government policies and farm size: does the size concept matter?," Applied Economics, Taylor & Francis Journals, vol. 37(19), pages 2231-2238.
    • Handle: RePEc:taf:applec:v:37:y:2005:i:19:p:2231-2238
    DOI: 10.1080/00036840500293904
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    References listed on IDEAS

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    1. K. L. Robinson, 1975. "Unstable Farm Prices: Economic Consequences and Policy Options," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 57(5), pages 769-777.
    2. Kislev, Yoav & Peterson, Willis, 1982. "Prices, Technology, and Farm Size," Journal of Political Economy, University of Chicago Press, vol. 90(3), pages 578-595, June.
    3. Alan McCunn & Wallace E. Huffman, 2000. "Convergence in U.S. Productivity Growth for Agriculture: Implications of Interstate Research Spillovers for Funding Agricultural Research," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 370-388.
    4. Zvi Griliches, 1998. "Issues in Assessing the Contribution of Research and Development to Productivity Growth," NBER Chapters, in: R&D and Productivity: The Econometric Evidence, pages 17-45, National Bureau of Economic Research, Inc.
    5. Robinson, K.L., 1975. "Unstable Farm Prices: Economic Consequences and Policy Options," 1975 Annual Meeting, August 10-13, Columbus, Ohio 284106, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Griliches, Zvi, 1998. "R&D and Productivity," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226308869.
    7. Zvi Griliches, 1998. "R&D and Productivity: The Econometric Evidence," NBER Books, National Bureau of Economic Research, Inc, number gril98-1.
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    Citations

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    Cited by:

    1. Sabasi, Darlington & Shumway, C. Richard, 2014. "Technical Change, Efficiency, and Total Factor Productivity in U.S. Agriculture," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170225, Agricultural and Applied Economics Association.
    2. Yucan Liu & C. Richard Shumway & Robert Rosenman & Virgil Eldon Ball, 2011. "Productivity growth and convergence in US agriculture: new cointegration panel data results," Applied Economics, Taylor & Francis Journals, vol. 43(1), pages 91-102.
    3. Piet, Laurent, 2016. "Recent trends in the distribution of farm sizes in the EU," 149th Seminar, October 27-28, 2016, Rennes, France 245075, European Association of Agricultural Economists.
    4. Kimhi, Ayal & Rekah, Hila, 2005. "The Simultaneous Evolution Of Farm Size And Specialization: Dynamic Panel Data Evidence From Israeli Farm Communities," Discussion Papers 7170, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
    5. Yuval Dolev & Ayal Kimhi, 2010. "Do family farms really converge to a uniform size? The role of unobserved farm efficiency ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(1), pages 119-136, January.
    6. Mary Clare Ahearn & Penni Korb & Jet Yee, 2009. "Producer Dynamics in Agriculture: Empirical Evidence," NBER Chapters, in: Producer Dynamics: New Evidence from Micro Data, pages 369-391, National Bureau of Economic Research, Inc.
    7. Samiul Haque, 2022. "US federal farm payments and farm size: Quantile estimation on panel data," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(1), pages 139-154, February.
    8. Dolev, Yuval & Kimhi, Ayal, 2006. "Survival And Growth Of Family Farms In Israel: 1971-1995," Discussion Papers 7146, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
    9. Kimhi, Ayal, 2009. "Heterogeneity, Specialization and Social Cohesion in Israeli Moshav Cooperatives," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 37(1), pages 1-13.
    10. Piet, Laurent, 2017. "Concentration of the agricultural production in the EU: the two sides of a coin," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261439, European Association of Agricultural Economists.
    11. Dolev, Yuval & Kimhi, Ayal, 2008. "Does Farm Size Really Converge? The Role of Unobserved Farm Efficiency," Discussion Papers 45778, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
    12. Taisuke Takayama & Tomoaki Nakatani & Tetsuji Senda & Takeshi Fujie, 2021. "Less‐favoured‐area payments, farmland abandonment and farm size: evidence from hilly and mountainous areas in Japan," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 65(3), pages 658-678, July.

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