Agricultural Policy Reform and Its Impact on Farm Households Income Inequality

Author(s):  
Ashok K Mishra ◽  
Hisham El-Osta ◽  
Saleem Shaik

In the United States the 1996 agricultural policy reform ushered in market-oriented farm policies and also gave farmers a seven-year lump-sum payment that was not tied to production. Some scholars argue that farm program payments have changed the distribution of income among farm households. Our study uses a national farmlevel survey for 1996-2001 to investigate a) the distribution of income among farm households, b) the sources that contribute to income inequality, and c) the role of farm program payments in equalizing income. Results show a high but declining income inequality between 1996 and 2001. Among the income components that contributed the most to income inequality was an income component labeled Income from farming and all other sources. Findings further show that marginal increases in both off-farm labor income and farm program payments reduce income inequality. The impact of various income components on overall reduction in income inequality therefore depends on a household’s participation in off-farm work and government farm programs.

2016 ◽  
Vol 3 (1) ◽  
Author(s):  
Pavlos Karanikolas ◽  
Stavros Zografakis

<p>This paper examines the incidence of income<br />inequality and poverty, and the impact of farm<br />income on inequality. A detailed typology of farm<br />households (FHs) is developed, based on Household<br />Budget Survey micro-data. Research findings<br />reveal enormous variations among households<br />with respect to income inequality and poverty.<br />While Marginal- and Pluriactive- FHs do not seem<br />to have an income problem, this is not the case<br />for Farm Households. Poverty is a widespread<br />phenomenon among Retired FHs. Farm income<br />and non-farm income generate a combined stabilization<br />effect, mitigating the overall inequality<br />within households. Policy implications of these<br />findings are discussed in the context of welfare<br />aspects of agricultural policy.</p>


2021 ◽  
Vol 13 (23) ◽  
pp. 13090
Author(s):  
Adrian Sadłowski ◽  
Wioletta Wrzaszcz ◽  
Katarzyna Smędzik-Ambroży ◽  
Anna Matras-Bolibok ◽  
Anna Budzyńska ◽  
...  

This paper aims to explore the importance of the direct-payments scheme as a tool for supporting the sustainable development of agriculture in Poland, and to assess the effects of the 2015 Common Agricultural Policy reform in this context. In particular, the study attempts to investigate the impact of different fund-allocation criteria on the regional distribution of direct payments. The research employs a simulation method in the form of variant analysis (the “what if” model)—a mathematical method with elements of statistical description, based on the complete dataset. For the purposes of one of the variants, a multi-criteria composite indicator was constructed, including stimulants and destimulants of the level of environmental sustainability of agricultural plant production. The analysis was conducted at the NUTS 2 level (voivodeships). The timeframe of the study covered the period 2010–2019. The data published by Statistics Poland and the Agency for the Restructuring and Modernisation of Agriculture were used as the source material. The analysis indicated that the 2015 Common Agricultural Policy reform redistributed public funds away from sustainable agricultural management principles. Applying some basic sustainability criteria in order to internalise environmental externalities would lead to a radical redistribution of first-pillar Common Agricultural Policy payments. The paper concludes that a real greening of the European Union’s agricultural policy is a task still to be accomplished.


Sign in / Sign up

Export Citation Format

Share Document