Other-Regarding Behavior and Taxpayer Preferences for Farm Policy

Abstract

Changes in the structure of agriculture have led some to rethink the purpose and nature of farm support programs. One key piece of information missing from the debate is evidence on taxpayer support for farm programs. Using data from a survey of over 1,100 randomly selected U.S. citizens, we determine how people would vote on particular farm policies and identify the determinants of support/opposition to farm programs. Our modeling approach makes use of developments in behavioral economics, which seek to explain other regarding behavior on the basis of altruism and inequality aversion. Our results show the majority of people (66%) support the subsidization of farmers, but voting outcomes are sensitive to the costs of the policy to the taxpayer as well as the magnitude of the payouts to famers. We find people act more altruistically toward small farms than very large farms and that people are averse to inequality. Furthermore, we found that the public's attitude toward maintaining a secure food supply and general attitudes toward government spending are also a significant determinant of preferences for farm programs.