Impact of Fertilizer Deficiency Payment on Farm Household Revenue in Taiwan
Date Issued
2015
Date
2015
Author(s)
Wang, Tien-Tzu
Abstract
Due to the financial crisis of 2007-08, raw materials price increased worldwide, and caused the fluctuation in fertilizer price in Taiwan. In order to assure the welfare of farmers, and stabilize the farm production, Taiwan’s government implemented Farm Deficiency Payment in May, 2008. Data use in this study was sourced from 2005 and 2010 Taiwan’s Agricultural Census. Difference-in-Difference approach was adopted in this paper to estimate the impact of Fertilizer Deficiency Payment on farm household revenue in Taiwan. We assigned the conventional farming households the treatment group, and both fertilizer-free and pesticide-free households as the control group. By measuring the difference between the treatment and control group overtime, we can carry out the policy effect. In this paper, we will analysis not only the policy effect for all farm households but also the policy effect in various types of the farm households such as rice, grain, vegetable, fruit, flower, and special crop farm households. The empirical results showed significant policy effect for all farm households. However, the policy effects for specific types of the farm households are not significant, and even found a negative policy effect for fruit farm households. On the other hand, the results suggested male farm operator has a higher impact on farm revenue; higher operator age has a negative impact on farm household revenue; working days have a positive relation with farm household revenue; higher education has a greater influence on farm household revenue; larger farm household population has more significant impact on farm revenue, full-time or part-time farm households significantly impact farm revenue; regions have various significant impact on farm household revenue; and finally, the cultivate area and weather have significant influence on farm household revenue.
Subjects
Fertilizer Deficiency Payment
Difference-in-Difference
Farm Household Revenue
SDGs
Type
thesis