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Analyzing Direct Payments to U.S. Farm Households: Addressing the 'Distribution Gap'

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  • Hopkins, Jeffrey W.
  • Morehart, Mitchell
  • Bohman, Mary

Abstract

Using data on U.S. farms and the households that farm, we present a distributional analysis of the impacts of decoupled payments on farm household well-being, considering both the unequal distribution of direct payments across the recipient population as well as the unequal pass-through from producers to landowners. Results show that heterogeneity in payments and heterogeneity in program “base acre” ownership combine in important ways. These impacts are important for understanding how production distortions may be caused by the payments, and are not captured by typical “representative agent” models. Results are viewed relative to several dimensions of well-being and relative to using either the firm or the household as the unit of analysis.

Suggested Citation

  • Hopkins, Jeffrey W. & Morehart, Mitchell & Bohman, Mary, 2002. "Analyzing Direct Payments to U.S. Farm Households: Addressing the 'Distribution Gap'," Conference papers 331031, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331031
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    References listed on IDEAS

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    4. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
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