The Effect of Government Agricultural Support Payments on Farmland Rental Prices
Faculty Sponsor(s)
Jeff Summers
Location
Jereld R. Nicholson Library
Subject Area
Economics
Description
The goal of this study was to explain the effect of government agricultural support payments on farmland rental prices. The regression specified farmland rental prices as a function of farm income (net of government payments received), and direct government agricultural support payments. The regression was estimated using seemingly unrelated regression for the years 2002, 2007, and 2012. Our results show the effect of government agricultural support payments on farmland rental prices was significant in 2002, then became insignificant for 2007 and 2012. We conclude the waning significance was caused by a change in the format of government support payments from a known value, activity-based payment, to a variable value, insurance payment.
Recommended Citation
Zosel-Offutt, Jarvis and Lange, James, "The Effect of Government Agricultural Support Payments on Farmland Rental Prices" (2015). Linfield University Student Symposium: A Celebration of Scholarship and Creative Achievement. Event. Submission 63.
https://digitalcommons.linfield.edu/symposium/2015/all/63
The Effect of Government Agricultural Support Payments on Farmland Rental Prices
Jereld R. Nicholson Library
The goal of this study was to explain the effect of government agricultural support payments on farmland rental prices. The regression specified farmland rental prices as a function of farm income (net of government payments received), and direct government agricultural support payments. The regression was estimated using seemingly unrelated regression for the years 2002, 2007, and 2012. Our results show the effect of government agricultural support payments on farmland rental prices was significant in 2002, then became insignificant for 2007 and 2012. We conclude the waning significance was caused by a change in the format of government support payments from a known value, activity-based payment, to a variable value, insurance payment.
