Agricultural and Biological Sciences
4 years ago

Taxpayer-funded farm payments distort production and export incentives, study finds.

RePEc: Research Papers in Economics
DISENTANGLING THE PRODUCTION AND EXPORT CONSEQUENCES OF DIRECT FARM INCOME PAYMENTS
Nancy H. Chau, Harry de Gorter

Paper Summary

The article explores how direct farm payments affect production and exports. Taxpayer-funded payments can distort farming incentives, while consumer-funded subsidies can impact domestic and export risks differently. Import barriers can potentially support export subsidies.

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