Document Type
Thesis
First Faculty Advisor
Ferdous Sardar
Second Faculty Advisor
Allison Kaminaga
Keywords
agriculture; farm income; sustainability
Publisher
Bryant University
Rights Management
CC-BY
Abstract
Farms, whether large, public corporations, or small family farms are often considered the backbone of America. Due to the impact of weather on crop production, the fluctuation in input prices, and the reliance of the rest of the economy on the agricultural industry, the government provides support programs and funding opportunities for farmers to help provide price and production stability. While some studies have been completed to assess the effectiveness of federally funded agriculture programs, little research has been done on the impact of state programs and is especially lacking on the effectiveness of sustainability programs. This study aims to determine how state-run energy efficiency programs in the United States impact the profitability of different sized farms and impact the labor market. A difference-in-difference analysis given a staggered adoption of treatment using panel data from 2002-2017 will be used to analyze the average treatment effect of state-run agriculture sustainability grants on net cash farm income, farm interest expense, and labor expenses. The results show a significant negative average treatment effect on net cash farm income which is likely a short-term effect. Results pertaining to the labor market provide evidence that labor expenses might actually decrease as a result of these programs, likely due to switches in priorities and capital replacing labor. The hope is that the findings resulting from this study will allow farmers to be better informed when making the decision to apply for funding and also assist state governments and taxpayers in understanding the effectiveness and opportunities for improvement of these programs they fund.
