How Coupled are Decoupled Farm Payments? A Review of Coupling Mechanisms and the Evidence

37 Pages Posted: 26 Sep 2008

See all articles by Arathi Bhaskar

Arathi Bhaskar

Iowa State University - Department of Economics

John Beghin

University of Nebraska Lincoln Agricultural Economics; Iowa State University - Department of Economics

Date Written: September 26, 2008

Abstract

This survey paper explores the literature on decoupling of farm programs that has emerged in the last 10 years. The paper identifies and assesses the various channels of potential coupling of decoupled farm payments and provides taxonomy of coupling mechanisms found in theoretical and empirical papers. Coupling of decoupled payments is pervasive but effects when measurable are small, with the exception of the impact on land values. The paper points to unresolved issues on potential coupling mechanisms for further research.

Keywords: agricultural policy, decoupled, decoupling, farm payments, programs program, subsidies, support

JEL Classification: Q18, Q12, Q17

Suggested Citation

Bhaskar, Arathi and Beghin, John, How Coupled are Decoupled Farm Payments? A Review of Coupling Mechanisms and the Evidence (September 26, 2008). Available at SSRN: https://ssrn.com/abstract=1274060 or http://dx.doi.org/10.2139/ssrn.1274060

Arathi Bhaskar

Iowa State University - Department of Economics ( email )

260 Heady Hall
Ames, IA 50011
United States

John Beghin (Contact Author)

University of Nebraska Lincoln Agricultural Economics ( email )

Lincoln, NE 68583
United States

Iowa State University - Department of Economics ( email )

383 Heady Hall
Ames, IA 50011
United States

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