The impact of decoupled payments on U.S. cropland values |
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| Authors: | Jennifer Ifft Todd Kuethe Mitch Morehart |
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| Institution: | 1. Charles H. Dyson School of Applied Economics and Management, Cornell University, NY;2. Department of Agricultural and Consumer Economics, University of Illinois, IL;3. Economic Research Service, U.S. Department of Agriculture, Washington, D.C. |
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| Abstract: | An extensive literature has shown that various farm programs may influence the value of farmland, but other studies have not examined the cropland price effects of direct, or decoupled, payments separate from countercyclical payments. This study uses nationally representative confidential field‐level panel data with farmer‐reported per‐acre land values. We analyze the impact of decoupled and other farm program payments on farmland values. Using a fixed effects model and controlling for various factors that influence farmland values, we find that an additional dollar of decoupled payments has a large and statistically significant impact on farmland values of about $18 per acre. These results are comparable with similar studies undertaken in Europe. |
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| Keywords: | Q14 Q18 Decoupled payments Direct payments Cropland values June Area Survey |
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