Classical Horizontal Inequities in the Provision of Agricultural Income Support

This article explores the redistributive effects of classical horizontal inequities induced by agricultural policy. Within-farm type horizontal inequity is associated with differences in the level of support received by farms of a given type and level of pre-support income. Between-farm type horizontal inequity arises from systematic differences in support levels between commodity regimes. The overall redistributive effect of such inequities in Scottish agriculture is shown to be substantial, though systematic discrimination between farm types is not the major cause. The imperfect targeting of support revealed by the empirical findings has implications for the design of policy.