Convergence in the Agricultural Incomes: a Comparison between the US and EU

Abstract

In this paper we compare the changes in farm incomes in EU regions and US States between1989 and 2002. The aim of this comparative analysis is to highlight the patterns of convergence or devergence and how they differ over time. We use to recent analytical instruments: no-stationary panel analysis and dynamic distribution analysis. Both tools overcome the problems involved in using standard cross selection analysis. The results of the no.stationary panel analysis show that EU regions are converging, and that family farm income per hectare is converging faster than net added value. In the US States the analysis shows that substantial differences in farm income persist, and there are no evident signs of convergence. In brief, there were more changes in farm income in the EU between 1999 and 2002 than in the USA