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Agricultural Land, Technology And Farm Policy

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  • S. Offutt
  • R. Shoemaker
Abstract
The relative importance of farmland and of agriculture in a developed economy decreases over time, largely due to the landsaving bias in technological change. In spite of this decrease, or perhaps because of it, agricultural policies have sought to transfer income to farmers from consumers and taxpayers. Since World War II, a primary instrument which the US has employed in pursuing this transfer has been a system of acreage controls that restricts the input of land as a factor in field crop production. This programme has resulted in the transfer of benefits to land owners through capitalisation into land values. Evidence from a translog cost function and share equations of the US agricultural sector suggests that government intervention has moderated the decrease in the share of land in the value of agricultural production. At the same time, land‐saving bias in technological change has been reinforced by the induced scarcity of land, thereby acting to reduce the land share.

Suggested Citation

  • S. Offutt & R. Shoemaker, 1990. "Agricultural Land, Technology And Farm Policy," Journal of Agricultural Economics, Wiley Blackwell, vol. 41(1), pages 1-8, January.
    • Handle: RePEc:bla:jageco:v:41:y:1990:i:1:p:1-8
    DOI: 10.1111/j.1477-9552.1990.tb00614.x
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    References listed on IDEAS

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    1. John E. Floyd, 1965. "The Effects of Farm Price Supports on the Returns to Land and Labor in Agriculture," Journal of Political Economy, University of Chicago Press, vol. 73(2), pages 148-148.
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    3. Christensen, Laurits R & Greene, William H, 1976. "Economies of Scale in U.S. Electric Power Generation," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages 655-676, August.
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    Cited by:

    1. Fuglie, Keith & Ballenger, Nicole & Rubenstein, Kelly Day & Klotz, Cassandra & Ollinger, Michael & Reilly, John & Vasavada, Utpal & Yee, Jet, 1996. "Agricultural Research and Development: Public and Private Investments Under Alternative Markets and Institutions," Agricultural Economic Reports 262031, United States Department of Agriculture, Economic Research Service.
    2. Denbaly, Mark & Vroomen, Harry, 1991. "Elasticities of Fertilizer Demands for Corn in the Short and the Long Run: A Cointegrated and Error-Correcting System," Staff Reports 278575, United States Department of Agriculture, Economic Research Service.
    3. Tobey, James A. & Reinert, Kenneth A., 1991. "The Effects of Domestic Agricultural Policy Reform on Environmental Quality," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 43(02), pages 1-9.
    4. Ribaudo, Marc O. & Shoemaker, Robbin A., 1995. "The Effect of Feedgrain Program Participation on Chemical Use," Agricultural and Resource Economics Review, Cambridge University Press, vol. 24(2), pages 211-220, October.

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