Assessing the Impact of Direct Payments Convergence on Farm Income Inequality: The Case of Italian Farms

2019 ◽  
Vol 31 (4) ◽  
pp. 417-428 ◽  
Author(s):  
Tantari Antonella ◽  
Pierangeli Fabio ◽  
Cardillo Concetta
Keyword(s):  
Income Inequality ◽  
Farm Income ◽  
Direct Payments ◽  
On Farm ◽  
The Impact

scholarly journals Effects of the Income Stabilization Tool on farm income level, variability and concentration in Italian agriculture

2019 ◽  
Vol 7 (1) ◽  
Author(s):  
Simone Severini ◽  
Giuliano Di Tommaso ◽  
Robert Finger
Keyword(s):  
Income Inequality ◽  
Management Tool ◽  
Farm Income ◽  
The European Union ◽  
Flat Rate ◽  
Direct Payments ◽  
Gini Decomposition ◽  
Future Policy ◽  
Income Variability ◽  
The Impact

AbstractThis paper provides an ex ante assessment of the effects of the Income Stabilization Tool (IST), a new risk management tool proposed in the Common Agricultural Policy of the European Union. We investigate the effects of IST on income variability and levels as well as on income inequality in the farming population. We take Italian agriculture as an example as the introduction of IST is currently under discussion there. A rich panel of 2777 farms was studied over a period of 7 years. We use stochastic simulation to derive different income inequality estimates and apply Gini decomposition approaches to assess the distributional implications of IST. We compare the current income situation with that resulting from a hypothetical implementation of IST under different policy scenarios, also accounting for reduced levels of CAP direct payments. We find that IST not only stabilizes farm income but also enhances its level and reduces income inequality in Italian agriculture. IST is more effective in reducing income inequality when farmers pay contributions to mutual funds that are proportional to their income compared to the case of flat rate contributions. Finally, results do not support the hypothesis that the impact of IST will differ if the level of direct payments were to be reduced. Thus, results seem robust enough to accommodate future policy conditions.

scholarly journals Farm household income inequality in Slovenia

2020 ◽  
Vol 17 (4) ◽  
pp. e0112 ◽  
Author(s):  
Štefan Bojnec ◽  
Imre Fertő
Keyword(s):  
Income Inequality ◽  
Agricultural Policy ◽  
Common Agricultural Policy ◽  
Household Income ◽  
Farm Income ◽  
Farm Household ◽  
Data Set ◽  
Market Income ◽  
On Farm ◽  
The Impact

Aim of study: To investigate the structure and evolution of farm household income and examine the contribution of different sources of farm household income, particularly the impact of Common Agricultural Policy reform on farm household income inequality in Slovenia.Area of study: Slovenia, one of the European Union member states.Material and methods: A panel data set was compiled using Slovenian Farm Accountancy Data Network data at farm level for the period 2007-2013. Total farm household income was disaggregated into two different components: 1) income components, which can contain market income and off-farm income, and 2) subsidy components, which can contain subsidies from Pillars 1 and 2. Pillar 2 support included subsidies related to agri-environmental measures, less favoured areas and other rural development measures. The income distribution and decomposition were examined using the Gini decomposition method to determine the contribution of each income source and the policy shift from market to government support on farm household income and overall inequality.Main results: A shift in Common Agricultural Policy and related measures determined the structure and evolution of farm household incomes. Off-farm income had a lesser and rather stable impact on farm household income inequality, while the major change involved an increase in the importance of subsidies from Pillar 2 which is consistent with a policy of targeting farms in less favoured areas. Subsidies from Pillar 1 reduced, while market income increased farm household income inequality.Research highlights: Subsidies in farm incomes increased. They could reduce farm household income inequality.

scholarly journals Farmers’ Participation in Agritourism: Does It Affect the Bottom Line?

2013 ◽  
Vol 42 (3) ◽  
pp. 471-490 ◽  
Author(s):  
Hyunjeong Joo ◽  
Aditya R. Khanal ◽  
Ashok K. Mishra
Keyword(s):  
Well Being ◽  
Farm Income ◽  
Small Scale ◽  
Bottom Line ◽  
Alternative Source ◽  
Large Farm ◽  
Household Incomes ◽  
On Farm ◽  
The Impact ◽  
Economic Well Being

Agritourism is an alternative source of farm income. We examine farmers’ participation in agritourism activities to assess the impact of participation on farm household income and return to assets using a large farm-level survey. The results reveal that older, educated, and female operators are more likely to participate in agritourism. However, government subsidies and the population of the county are negatively correlated with agritourism. Of the types of farm operations examined, small-scale farms that involved agritourism generated the greatest household incomes and returns to assets. For operators of small farms, agritourism can boost the economic well-being of farm households.

A Behavioural Explanation of Smallholder Entrepreneurship with Empirical Evidence from KwaZulu-Natal, South Africa

2021 ◽  
Author(s):  
Fortunate Nosisa Zaca ◽  
Edilegnaw Wale ◽  
Unity Chipfupa
Keyword(s):  
Psychological Capital ◽  
Positive Impact ◽  
Smallholder Farmers ◽  
Farm Income ◽  
Tobit Regression ◽  
Entrepreneurial Spirit ◽  
Kwazulu Natal ◽  
Social Grant ◽  
On Farm ◽  
The Impact

Abstract This study aimed to investigate the impact of social grant dependence on on-farm entrepreneurial spirit of smallholders. A sample of 175 farmers was obtained from two communities in KwaZulu-Natal. The study employed Principal Components Analysis and Tobit regression. The entrepreneurial spirit indices were constructed from revealed preference-based questions. The study found a positive relationship between the social grant and on-farm entrepreneurial spirit. The positive impact on rural household farming activities implies that the prevailing low entrepreneurial levels among farmers are not the result of social grant dependence but lack of opportunity and other resource constraints. However, to remain effective, policy should ensure that the grant money benefits (directly/indirectly) the intended beneficiary and their households. The other factors found to be associated with on-farm entrepreneurship include age of the farmer, gender, psychological capital, access to training, access to education, access to land, inadequate farming assets, water insecurity, extension, off-farm income and group membership. The study also recommends the need for strategies that improve psychological capital and thus enhance positive on-farm entrepreneurial behaviour among smallholder farmers. Addressing institutional and farming constraints related to access to resources and services (land, credit, extension, and water) and collective action will positively contribute to on-farm entrepreneurship.

The impact of cooperatives’ transportation services on farm income: Evidence from tobacco farmers in Guizhou, China

Agribusiness ◽  
2019 ◽  
Vol 36 (1) ◽  
pp. 146-158
Author(s):  
Junying Lin ◽  
Zhonggen Zhang ◽  
Ziming Liu ◽  
Jens Rommel
Keyword(s):  
Farm Income ◽  
Transportation Services ◽  
On Farm ◽  
The Impact

scholarly journals The Effect of the Comprehensive Rural Village Development Program on Farm Income in South Korea

2020 ◽  
Vol 12 (17) ◽  
pp. 6877
Author(s):  
Eunji Choi ◽  
Jonghoon Park ◽  
Seongwoo Lee
Keyword(s):  
Rural Development ◽  
South Korea ◽  
Positive Impact ◽  
Rural Households ◽  
Development Program ◽  
Farm Income ◽  
Rural Village ◽  
Ex Post ◽  
On Farm ◽  
The Impact

Faced with an aging and declining population, many governments around the world endeavor to revitalize their rural communities in a sustainable manner. In South Korea, the Comprehensive Rural Village Development Program (CRVDP) was carried out from 2004 to 2013 as a key strategy to reinvigorate rural areas. This study aims to conduct an ex-post quantitative evaluation of the effectiveness of the CRVDP in boosting rural households’ farm income. In doing so, the present study adopts quasi-experimental research design that is seldom utilized in assessing rural policies. As an alternative evaluation tool with flexibility for using readily available data, the study employed the combined application of the Heckman selection model and the Blinder–Oaxaca decomposition method. The study revealed a significant positive impact of the Program on farm income of rural households in the program-supported areas from both cross-sectional and longitudinal perspectives. A robust causal estimation of the impact of this bottom-up, multi-sectoral rural development program on farm income is achieved, which can be leveraged to widely promote similar type of rural development approach.

Tax policy and farm capital investment: Section 179 expensing and bonus depreciation

2016 ◽  
Vol 76 (2) ◽  
pp. 246-269 ◽  
Author(s):  
James M Williamson ◽  
Sarah Stutzman
Keyword(s):  
Fixed Effects ◽  
Capital Investment ◽  
Agricultural Sector ◽  
Physical Capital ◽  
Cost Recovery ◽  
Farm Income ◽  
Content Type ◽  
Bonus Depreciation ◽  
On Farm ◽  
The Impact

Purpose – The purpose of this paper is to estimate the impact of Internal Revenue Code cost recovery provisions – Section 179 and “bonus depreciation” – on farm capital investment. Design/methodology/approach – The authors construct a synthetic panel of data consisting of cohorts of similar farms based on state and production specialization using the USDA’s Agricultural Resource Management Survey for years 1996-2012. Employing panel data methods, the authors are able to control for time-invariant fixed effects, as well as the effects of past investment on current investment. Findings – The authors estimate statistically significant investment demand elasticities with respect to the Section 179 expensing deduction of between 0.28 and 0.50. A change in bonus depreciation, on average, had little impact on capital investment. Practical implications – The estimates suggest there is a modest effect of the cost recovery provisions on investment overall, but a stronger effect on farms that have more than $10,000 in gross cash farm income. There are other implications for the agricultural sector: the provisions may encourage technology adoption with its associated benefits, such as reduced cost of production and improved conservation practices. On the other hand, the policy could contribute to the growing concentration in production as large commercial farms expand their operated acreage to take advantage of increasingly efficient physical capital. Originality/value – To the authors’ knowledge, this is the first research to use a nationally representative dataset to estimate to impact of Section 179 and “bonus depreciation” on farm investment. The findings provide evidence of the provisions’ impact on farm capital purchases.

scholarly journals Rural development policy in Italy: the impact of growth-oriented measures on farm outcomes  

2018 ◽  
Vol 64 (No. 3) ◽  
pp. 115-130 ◽  
Author(s):  
 Salvioni Cristina ◽  
 Sciulli Dario
Keyword(s):  
Rural Development ◽  
Development Policy ◽  
Time Lag ◽  
Capital Intensity ◽  
Farm Income ◽  
Productivity Increase ◽  
Rural Development Policy ◽  
Farm Performance ◽  
On Farm ◽  
The Impact

Growth-oriented measures of the EU’s rural development policy have been promoted to meet the aims of the Lisbon strategy. This article assesses their impact on performance-related variables of farms. We apply a conditional difference-in-differences approach to the 2003–2007 Italian FADN survey. No evidence emerges to indicate any impact of the measures on farm income, employment or partial productivities. Conversely, participation in the selected policy schemes resulted initially in a productivity increase and, subsequently, in enhanced farm performance. We argue that participation in the growth-oriented measures gave rise to a process of capital deepening that, in turn, elicited a productivity increase and, eventually, positive growth rates in farm performance. The estimated variations in capital intensity signal that the measures resulted in the activation of channels that are expected to positively affect farm performance after a time lag.

Small growers’ direct participation in the market and its impact on farm income

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ujjwal Kanti Paul ◽  
Gurudas Das ◽  
Malabika Das ◽  
Tanuj Mathur
Keyword(s):  
Small Sample ◽  
Series Data ◽  
Operating Efficiency ◽  
Farm Income ◽  
Local Market ◽  
Marketing System ◽  
Content Type ◽  
Direct Participation ◽  
On Farm ◽  
The Impact

PurposeThe existing literature on linking growers directly with the market mostly overlooks the case of smallholders. They grow commercial–perishable crops and have to rely on the efficacy of the marketing system. The present paper intends to fill this void.Design/methodology/approachThe paper studies the performance of two local markets among 216 pineapple producers and 50 traders using the structure–conduct–performance framework. Following which the authors attempt to unravel the determinants of growers' direct participation in the market and the impact of such involvement on the farm income using the Heckman two-stage treatment effect model.FindingsThe study analysis shows that the likelihood of growers’ direct participation in markets, found oligopolistic, increases with education, price information and family labor unit, while decreases with the growers' age, distance from market and the footfall of intermediaries at the farm gate. The second stage of the model has established a positive impact of participation on farm income.Research limitations/implicationsThe small sample size could restrict generalization. The authors used only operating efficiency as an indicator of the performance of the marketing system due to the unavailability of district-level time series data on pineapple pricing.Originality/valueThis study shows that local food markets are oligopolistic. Growers fetch very less share in consumers' price and become vulnerable to food insecurity. The study highlights the determinants of growers' direct participation in the local market and the impact of such involvement on farm income.

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