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Would farmers benefit from removing more land from production in the next farm bill?

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  • Nathan P. Hendricks

Abstract

Do farmers benefit more from Farm Bill programs like Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) or payments to remove land from production? I estimate the benefits to farmers from these programs for corn, soybeans, and wheat. I find that ARC and PLC give larger net benefits to producers for the same government expenditures. Furthermore, paid diversions primarily benefit landowners, while harming tenants and input suppliers. While paid diversions can provide environmental benefits, farm groups are unlikely to support a significant expansion.

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  • Nathan P. Hendricks, 2022. "Would farmers benefit from removing more land from production in the next farm bill?," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(3), pages 1139-1157, September.
    • Handle: RePEc:wly:apecpp:v:44:y:2022:i:3:p:1139-1157
    DOI: 10.1002/aepp.13242
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