Abstract
AbstractThe marginal effect of government payments on farm size of US corn/soy and wheat producers is currently contested. This paper uses a quantile estimator with a restricted access panel dataset. Payments are positively associated with farm size; the association is statistically significant at select percentiles of the farm size distribution, but the statistical significance is not systematically related to farm size. Although the marginal effect is qualitatively larger for bigger farms, their differences are not statistically significant. This study does not provide any empirical evidence to suggest that federal farm dollars cause (i) only large farms to grow bigger or (ii) large farms to grow more than small farms.
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