Direct payments most effective in transferring income to U.S. farmers
The article looks at how government policies affect resource use in the U.S. grain and oilseed sectors. They studied three common policies: market price supports, direct payments, and input subsidies. The researchers found that direct payments are the best at giving income to farmers, while input subsidies are the least effective. All policies lead to more resource use, with input subsidies having the biggest impact and direct payments having the smallest.