Does an Income Gap between Farm and Nonfarm Households Still Exist? The Case of the European Union

Rocchi, Benedetto; Marino, Maria Luisa; Severini, Simone

doi:10.1002/aepp.13116

Cited by 14 publications

(20 citation statements)

References 43 publications

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“…Such data are collected in the EU Survey on Income and Living Conditions (EU-SILC) but the small number of farm households in this survey makes it difficult to draw valid conclusions. By pooling these data across EU countries, Rocchi, Marino, and Severini (2020) find evidence that, on average, farm household incomes are lower than in non-farm households and even more so if the comparison is made with self-employed households in the non-farm sector. Controlling for observable differences such as age, education, marital status and health status markedly reduces the size of the disparity, as does accounting for a wider definition of income to include nonmonetary factors, but it does not completely eliminate it.…”

Section: Ensuring Food Securitymentioning

confidence: 98%

The contribution of research to agricultural policy in Europe

Matthews

2022

BAE

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This paper surveys some of the key themes in European agricultural policy research in recent decades. It identifies three main drivers of this research: a gradual broadening of the scope of the discipline in response to changing political priorities and values; an enlarged toolbox of policy instruments that has raised new questions and required the development of new modes of analysis; and the availability of new data sources, increased computing power, as well as the introduction of new methodological advances from economics, statistics and psychology that have opened the way to new and more powerful analytical tools. Particular attention is paid to direct payments and agri-environment-climate measures as examples of new policy instruments that have driven the research agenda. The paper concludes by identifying requirements to ensure that agricultural policy research remains vibrant and relevant in the future.

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Section: Ensuring Food Securitymentioning

confidence: 98%

The contribution of research to agricultural policy in Europe

Matthews

2022

BAE

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“…Nguyen et al ., 2007; Bargain and Kwenda, 2011; Lausev, 2014; Christopoulou and Monastiriotis, 2014; Hospido and Moral‐Benito, 2016). But, in the literature on the farm parity issue, unobserved heterogeneity has been rarely taken into account with very few exceptions (Stefani et al ., 2012; De Frahan et al ., 2017; Rocchi et al ., 2020). Thanks to the rotating panel nature of the EU‐SILC, we exploit the longitudinal structure and employ fixed effects regressions, which cater for individual unobserved characteristics.…”

Section: Background On Farm–non‐farm Income Disparitymentioning

confidence: 99%

“…The income disparity between FH and NFH has been studied mostly in the USA ( Mishra et al ., 2002; El‐Osta et al ., 2007; Katchova, 2008). Only a few studies investigate the farm/non‐farm income disparity in the European Union (EU) (Rocchi et al ., 2012; Stefani et al ., 2012; de Frahan et al ., 2017; Rocchi et al ., 2020), despite a large share (almost 40% in 2018) of the EU budget being used for economic support to EU farmers through the CAP. For this reason, we offer a systematic EU‐wide assessment of the income differential between the income of farm and non‐farm households and answer the following three main research questions: Does a significant disparity in the income level between farm and non‐farm households still exist in the EU after controlling for observable and unobservable characteristics?…”

Section: Introductionmentioning

confidence: 99%

Conditional Income Disparity between Farm and Non‐farm Households in the European Union: A Longitudinal Analysis

Marino¹,

Rocchi²,

Severini³

2021

J Agricultural Economics

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Government interventions in the agricultural sector have been historically justified by the existence of an income disparity between farmers and non-farmers. However, recent studies have found that such disparity is disappearing over time, particularly in the United States. This work offers the first longitudinal systematic assessment on the average income disparity between farm and non-farm units in the European Union, differentiating between old and new Member States. Using the EU-SILC dataset, both broad (having some farm income) and narrow (living mainly on agriculture) farm households are compared with a general sample of non-farm households and a more restricted sample of self-employed non-farm households. To control for household observable characteristics and time-constant unobserved factors, we use a fixed effects regression. Results suggest that the farm/non-farm income disparity has disappeared in the European Union unless we compare narrow farm households with all non-farm households: in this case, the former are more likely to be better off than the latter. A limited income disparity is found only in the case of new Member States for broad farm households only. Results are used to draw policy implications regarding the role of CAP in supporting farm income.

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“…Public opinion often considers agricultural incomes as structurally lagging behind incomes in other sectors (Katchova, 2008; Rocchi et al., 2021). The modernization of agriculture has put pressure on farmers to invest continuously in new technologies and produce for mass food markets, thereby squeezing economic margins (Ploeg et al., 2000).…”

Section: Introductionmentioning

confidence: 99%

Does short food supply chain participation improve farm economic performance? A meta‐analysis

Chiaverina

Drogué

Jacquet

et al. 2023

Agricultural Economics

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Many researchers, policy makers, and food activists view Short Food Supply Chains (SFSC) as attractive levers for improving farm income and the sustainability of farming systems. However, the empirical evidence documenting the association between SFSC participation and farm economic performance has been mixed. In this study, through a meta-analysis using a logistic regression, we identify key factors to explain differences between studies that find better economic performance in SFSC and those that do not. Our meta-analysis consists of 48 studies published in English and French from 2000 to 2022 that examine the economic performance of farms engaged in SFSC. Based on far more empirical evidence than previous reviews, we find that the relationship between SFSC participation and farmer income remains ambiguous. More specifically the findings indicate that the reported effect of SFSC on a farm economic performance varies depending on location and the indicator used to capture the economic performance of farms. Studies conducted in Europe are more likely to report higher farmer income as are studies that use profit satisfaction metrics rather than measures of gross or net income. We also emphasize the need to interpret the reported results cautiously because few are based on causal inference methods. Furthermore, the very few studies that account for selection bias often do so with inadequate corrections.

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Does an Income Gap between Farm and Nonfarm Households Still Exist? The Case of the European Union

Cited by 14 publications

References 43 publications

The contribution of research to agricultural policy in Europe

The contribution of research to agricultural policy in Europe

Conditional Income Disparity between Farm and Non‐farm Households in the European Union: A Longitudinal Analysis

Does short food supply chain participation improve farm economic performance? A meta‐analysis

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