Journal Article

Impact of Coupled and Decoupled Government Subsidies on Off-Farm Labor Participation of U.S. Farm Operators

Dewbre, Joe, El-Osta, Hisham, Ahearn, Mary Clare

2006

Overview

With the 1996 Farm Act, the United States introduced payments that were designed to be \"decoupled.\" Labor allocation choices are likely to be affected by receipt of payments, and income from off-farm jobs has been the major source of income for most farm households for sometime. This article examines whether the 1996 change has affected the off-farm labor participation of farm households. We conclude that the observed increase in off-farm participation of farm operators who received payments was not the result of the 1996 policy change. Government payments, whether coupled or decoupled, have a negative effect on off-farm labor participation.

• Publisher: Blackwell Publishing, Inc,Oxford University Press,American Agricultural Economics Association,Blackwell Publishing Ltd
• Subject: Agricultural economics / Agricultural households / agricultural management / Agricultural production / agricultural programs and projects / Agricultural Resource Management Study / Agricultural Resource Management Survey / Agricultural subsidies / Agriculture / ARMS / Commodities / Crop management / Crops / Decision making / decoupled payments / econometric models / econometrics / Employment / Farm economics / farm households / Farm income / farm labor / farm operator households / farm operators / farm profitability / Farms / Farmworkers / Government / Government grant / Government payments / Government subsidies / Households / Housework / Impact analysis / Income / Income inequality / Labor / labor economics / Labor force participation / labor market / labor productivity / Labor supply / Labour / Leisure / Loan payments / Off-farm / off-farm employment / off-farm labor / Off-farm labour / Operators / Participation / Payment models / Payments / Policy making / Q120 / Q180 / Spouses / Studies / Subsidies / U.S.A / United States / Wage rates