The effects of decoupling on land allocation

Teresa Serra, David Zilberman, José M. Gil, Allen Featherstone

Research output: Contribution to journalArticlepeer-review

Abstract

The purpose of this article is to study the impact of agricultural policy decoupling on land allocation decisions. Our analysis contributes to the literature by formally assessing the effects of decoupling on farms' crop mix and on the decision to set land aside. The analysis is undertaken within the framework of the model of production under uncertainty developed by Just and Zilberman (1986). Our empirical application focuses on a sample of Kansas farms observed from 1998 to 2001. Results show that US agricultural policy decoupling has resulted in a shift in land use away from program crops towards nonprogram commodities offering higher expected profits and idle land.

Original languageEnglish (US)
Pages (from-to)2323-2333
Number of pages11
JournalApplied Economics
Volume41
Issue number18
DOIs
StatePublished - 2009
Externally publishedYes

ASJC Scopus subject areas

  • Economics and Econometrics

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