Impact of direct payments on agricultural land use in less-favoured areas: evidence from Japan

Takayama, Taisuke; Hashizume, Noboru; Nakatani, Tomoaki

doi:10.1093/erae/jbz008

Cited by 12 publications

(20 citation statements)

References 26 publications

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“…The farm fixed effect controls for any farm characteristics that cannot be observed, such as landscapes with different agro-climatic conditions, do not change over time and that may influence farm production outcomes. The inclusion of the year fixed effect, ψ t , in Equation (1), is to control for shocks common to all the farms, for example, changes in market signals to all farms and price volatility [55,56]. Several factors confound the identification of the causal impact of decoupled payments on farm-level production [13,14,19].…”

Section: Empirical Modelmentioning

confidence: 99%

Estimating the Impact of Decoupled Payments on Farm Production in Northern Ireland: An Instrumental Variable Fixed Effect Approach

Olagunju

Patton²,

Feng³

2020

Sustainability

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The production stimulating impact of agricultural subsidies has been a well-debated topic in agricultural policy analysis for some decades. In light of the EU reform of the Common Agricultural Policy (CAP) in year 2005 in which agricultural subsidies were decoupled from current production decisions and the modification to this payment in 2015, this study investigates the impact of decoupled payments under these two reforms on livestock production in Northern Ireland. The study uses a farm-level panel dataset covering 2008–2016 period and employs an instrumental variable fixed effect model to control for relevant sources of endogeneity bias. According to the empirical results, the production impacts of decoupled payments were positive and significant but with differential impacts across livestock production sectors, suggesting that decoupled payments still maintain a significant effect on agricultural production and provide an indication of the supply response to changes in decoupled payments.

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Section: Empirical Modelmentioning

confidence: 99%

Estimating the Impact of Decoupled Payments on Farm Production in Northern Ireland: An Instrumental Variable Fixed Effect Approach

Olagunju

Patton²,

Feng³

2020

Sustainability

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“…In particular, as previous studies have conducted analyses via case studies or descriptive statistics, rigorous empirical evidence on the effects of DPs in LFAs on farmland use is limited. The exceptions are two recent studies by Takayama et al (2020) and Ito et al (2019). Takayama et al (2020) use rural community-level panel data in Japan and find that, although DPs for HMAs fostered continued land use and prevented farmland abandonment through the maintenance of farm households and household members, these effects are modest.…”

Section: Introductionmentioning

confidence: 94%

“…The exceptions are two recent studies by Takayama et al (2020) and Ito et al (2019). Takayama et al (2020) use rural community-level panel data in Japan and find that, although DPs for HMAs fostered continued land use and prevented farmland abandonment through the maintenance of farm households and household members, these effects are modest. Ito et al (2019) also focus on Japanese rural communities in a limited number of regions and find that DPs deter farmland abandonment.…”

Section: Introductionmentioning

confidence: 94%

“…In 2017, 48.3% of total LFA payments were allocated to community activities, and 51.7% to community members (MAFF 2018). In 2017, 34.7% of the total payments allocated to community activities were used for the collective management of CPRs, 7.9% for machines and facilities shared by farm members, and 28.1% were reserved for future activities (Takayama et al 2020).…”

Section: Policy Background In Japanmentioning

confidence: 99%

“…This study builds on Takayama et al (2020) and Ito et al (2019), who also examine the impact of DPs for HMAs on farmland use in Japan. However, it differs from the cited studies in the analysed unit of observation.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Less‐favoured‐area payments, farmland abandonment and farm size: evidence from hilly and mountainous areas in Japan*

Takayama¹,

Nakatani²,

Senda³

et al. 2021

Aus J Agri & Res Econ

Self Cite

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A direct payment (DP) scheme for hilly and mountfainous areas has been in place in Japan since 2000. This scheme's objective is to fill the gap in production costs between these less favourable areas and other agricultural locations and prevent abandoned farmland from increasing. Eligible rural communities decide whether to receive DPs, and half of the DP allocation in communities with DPs is distributed for collaborative community activities, with the remaining half allocated directly to farmers. We apply a difference-in-differences approach to examine the effect of these payments on farmland use. Using a large farm-level panel data set from before and after the payments were initiated, we employ a causal framework of analysis with a treatment group and two alternative control groups. We find that the payments led to a slowdown in the increase of abandoned farmland among surviving farms. Moreover, the payments have a marginal positive effect on the operated farm size of surviving farmers. The results imply that direct payment schemes in less-favoured areas play a key role in maintaining farmland.

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Impact of specialized rice production and marketing zoning policy on farmland use in Taiwan

Chang,

Takahashi,

Huang

et al. 2024

Paddy Water Environ

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Impact of direct payments on agricultural land use in less-favoured areas: evidence from Japan

Cited by 12 publications

References 26 publications

Estimating the Impact of Decoupled Payments on Farm Production in Northern Ireland: An Instrumental Variable Fixed Effect Approach

Estimating the Impact of Decoupled Payments on Farm Production in Northern Ireland: An Instrumental Variable Fixed Effect Approach

Less‐favoured‐area payments, farmland abandonment and farm size: evidence from hilly and mountainous areas in Japan*

Impact of specialized rice production and marketing zoning policy on farmland use in Taiwan

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