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Examining The Trade Adjustment Assistance For Farmers In The U.S.: Role Of Information And Incentives In Program Participation

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  • Lee, Yu Na
  • Chau, Nancy
  • Just, David

Abstract

The Trade Adjustment Assistance (TAA) program for farmers was established in 2002 to assist farmers adversely affected by import surges. Since its introduction, the program has been mostly underused by farmers, and the American Recovery and Reinvestment Act (ARRA) in 2009 eased the program rules to drive more participation of farmers. Based on the decision-making model and the uniquely constructed panel data set, we find that farmers’ incentive to make up for the losses in other types of direct government payments as well as eligibility criteria explain farmers’ participation in the TAA program. Less time and efforts needed for participation, proxied by previously approved cases of the same or similar commodities, also seems to drive farmers’ participation. Results also confirm that the ARRA of 2009 was effective in increasing farmers’ participation.

Suggested Citation

  • Lee, Yu Na & Chau, Nancy & Just, David, 2014. "Examining The Trade Adjustment Assistance For Farmers In The U.S.: Role Of Information And Incentives In Program Participation," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170597, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea14:170597
    DOI: 10.22004/ag.econ.170597
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    References listed on IDEAS

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    1. King, Gary & Zeng, Langche, 2001. "Logistic Regression in Rare Events Data," Political Analysis, Cambridge University Press, vol. 9(2), pages 137-163, January.
    2. King, Gary & Zeng, Langche, 2001. "Explaining Rare Events in International Relations," International Organization, Cambridge University Press, vol. 55(3), pages 693-715, July.
    3. Bacho, Alan P. & Goodwin, Harold L., Jr., 2008. "Outcomes of Trade Adjustment Assistance for Farmers Program in the United States: Trade Reform Act of 2002," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6466, Southern Agricultural Economics Association.
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    Keywords

    Agricultural and Food Policy; Farm Management; International Relations/Trade; Risk and Uncertainty;
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