The impact of decoupled payments on U.S. cropland values

Jennifer Ifft, Todd Kuethe, Mitch Morehart

Research output: Contribution to journalArticlepeer-review


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.

Original languageEnglish (US)
Pages (from-to)643-652
Number of pages10
JournalAgricultural Economics (United Kingdom)
Issue number5
StatePublished - Sep 1 2015


  • Cropland values
  • Decoupled payments
  • Direct payments
  • June Area Survey

ASJC Scopus subject areas

  • Agronomy and Crop Science
  • Economics and Econometrics


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