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Do Farm Subsidies Affect Crop Diversification?, Chadwick O'Neal Apr 2017

Do Farm Subsidies Affect Crop Diversification?, Chadwick O'Neal

Georgia College Student Research Events

The United States spends $20 billion each year on farm subsidies. Farmers face increased risk and income variation when their crop portfolio is less diversified. It’s possible for farm subsidies to decrease diversification if they are focused on specific crops. Utilizing state level subsidy and agricultural data from the Environmental Working Group, I used econometric analysis to estimate the effect of farm subsidies on crop diversification. I used the number of acres planted from the 15 top most subsidized and grown crops in the United States to derive my dependent variable, the Herfindahl-Hirschman index (HHI). The HHI is a market …


Encouraging Organic Agriculture: The Effects Of Conversion Subsidies, Sarah Adams Inkoom Jan 2017

Encouraging Organic Agriculture: The Effects Of Conversion Subsidies, Sarah Adams Inkoom

Electronic Theses and Dissertations

This thesis examines the importance of conversional subsidies in accounting for an increase in organic acreage in the 12 North-Central States in the United States. Monthly time series data that spans from January 2002 to December 2014 was used in the analysis. Empirical evidence suggests that increase in organic acreage is due in part to the availability of conversion subsidies. Without government assistance, most small-scale farmers are not sufficiently motivated to switch to organic production due to the high initial costs involved in transitioning. Further, increased institutional support could facilitate organic adoption and its absence is detrimental to increasing the …