An Empirical Investigation of the Linkages between Government Payments and Farmland Leasing Arrangements

Feng Qiu, Barry Goodwin () and Jean-Philippe Gervais ()

No 49242, 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin from Agricultural and Applied Economics Association

Abstract: This article investigates the impacts of decoupled and coupled support payments on farmland rental contract choices using a principal-agent model. We consider cash and share contracts as well as hybrid contracts, which are increasingly prominent in US agriculture. The conceptual framework suggests that restrictions on sharing payments between contracting parties are ineffective and induce an offsetting contractual rearrangement. Empirical results from a multinomial logit model confirm that government support programs have large significant effects on contract choices and that these effects vary by types of subsidies.

Keywords: Agricultural and Food Policy; Environmental Economics and Policy; Industrial Organization; Institutional and Behavioral Economics; Land Economics/Use; Risk and Uncertainty (search for similar items in EconPapers)
Pages: 31
Date: 2010
New Economics Papers: this item is included in nep-agr, nep-cta and nep-env
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Citations: View citations in EconPapers (3)

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Journal Article: An Empirical Investigation of the Linkages between Government Payments and Farmland Leasing Arrangements (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea09:49242

DOI: 10.22004/ag.econ.49242

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