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Effects of direct payments on rice income variability in Japan*

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Title: Effects of direct payments on rice income variability in Japan*
Authors: Nitta, Atomu Browse this author
Yamamoto, Yasutaka Browse this author →KAKEN DB
Severini, Simone Browse this author
Kondo, Katsunobu Browse this author
Sawauchi, Daisuke Browse this author →KAKEN DB
Keywords: direct payments
income variability
rice income
variance decomposition
Issue Date: Jan-2022
Publisher: John Wiley & Sons
Journal Title: Australian Journal of Agricultural and Resource Economics
Volume: 66
Issue: 1
Start Page: 118
End Page: 135
Publisher DOI: 10.1111/1467-8489.12445
Abstract: The effects of direct payments on rice income variability in Japan are analysed based on a balanced panel dataset of Japanese rice farms for 2012-2016. Firstly, the contribution of income components to rice income variability and the effects of a direct payment reduction are discussed by applying variance decomposition. Secondly, robust regression techniques are used to measure the correlation between direct payments and rice income variability. The originality of this paper is that it disaggregates the effects of payments using a regression analysis of the effects of direct payments on income variability for Japan. This contrasts with the existing literature on this topic, which has largely focused on European Union countries. This paper discusses to what degree the reduction in direct payments increases income variability. The results reveal that direct payments decrease Japanese rice income variability. Indeed, after controlling for various farm characteristics, we find a negative relationship between the amount of direct payments linked to rice production and rice income variability. Finally, the results suggest that reducing direct payments when the rice price is falling would increase rice income variability.
Type: article
Appears in Collections:農学院・農学研究院 (Graduate School of Agriculture / Faculty of Agriculture) > 雑誌発表論文等 (Peer-reviewed Journal Articles, etc)

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