Purchasing Policy: The Effect of Political Action Committee Campaign Contributions from the Agribusiness Sector on Support Mechanisms for Individual Crop and Product Producers

By Rebecca Sobel, Princeton University

In this paper, I analyze data on agricultural producer support mechanisms and agribusiness Political Action Committee campaign contributions from 1998 to 2016 to deter- mine the extent to which lobbying on behalf of any particular crop or agricultural product is translated into government transfers back to its producers. I proceed with a review of the existing literature about purchasing support mechanisms and the agriculture industry, and a discussion of the data, which is sourced from USDA, OECD, and The Center for Responsive Politics. Guided by Hausman test results, I run a fixed effects regression to demonstrate that campaign contributions do not have a statistically significant impact on transfers to producers in the agribusiness industry, despite findings in the literature.

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