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Farm Household Income: Towards Better Informed Policies (OECD, October 2004) SS Economics of Food Markets Kevin Lynch 23 rd October 2007 Trinity College, Dublin
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Why is information needed? Wanted: A new household model of rural and farm families. New classification : business/ household characteristics not commodity Two household farm problem Policy evaluation in times of reform Variety of households (panel data)
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What information is available? No comprehensive or consistent measure of rural household incomes Micro/macro problems, international & intertemporal comparisons FADN: data on size, composition & costs Tax reciepts: different provisions Household Surveys: not enough farms
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Obstacles to collecting this information Administrative: costs (speed of revision), privacy, burden on participants Technical: representation, wealth, panel composition Political: non-compliance, vested interests
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How can these be overcome? Accountability of public funds Counting costs from programme budgets Cost: IT, multiple use, wider scope and applications – private sector? Best practice: IT, standardised estimators
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How would such information help policy makers? To assess the nature, cause and extent of income problems. Farm/non-farm income Measurable targets for policy New policy design for specific problems Policy evaluation Better national models Replacing incomplete irrelevant data
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Summary and Outlook Reliable data needed to measure policy effectiveness Survey costs<policy costs Technical problems are relatively minor Co-operation between agents and countries is essential
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