The Distribution of Income among U.S. Self-Employed Farm Households: A Close Look Before and During COVID-19’s Recession

This paper examines the distribution of ‘money’ income of self-employed farm households in the U.S. using multiple inequality measures and multi-year data from Current Population Survey. Special emphasis is given to 2016 and 2020, which portray total household income before and during the onset of the COVID-19’s recession. The two selected years, respectively, characterize low and high farm income years, with their likely divergent impact on the well-being of self-employed farm households. Using the Gini index measure of inequality, findings show that money income was just as unequally distributed in 2020, the year of the COVID-19’s recession, as in 2016. Adopted decomposition method of the Gini index showed income from off-farm wages and/or salaries, in comparison to the other components of total income, with the strongest equalizing marginal impact on the overall distribution of money income in 2016 and with a much lesser impact in 2020. Considering that off-farm income from wages and/or salaries is the dominant income source of self-employed farm households, macroeconomic factors are likely to continue to influence the distribution of income among self-employed farm households

Life-Cycle and Its Impact on the Disparity in Economic Well-Being among U.S. Sole Proprietor Households: Evidence from Two National Surveys

The impact of age on the distribution of wealth among U.S. sole proprietor households is analyzed using data from two national surveys in conjunction with disparity and social welfare decomposition methods. Results show higher disparity in wealth when the household is a non-farm rather than a farm sole proprietor household. The cohort with the greatest need in terms of targeted programs is the group of farm or non-farm households headed by individuals younger than 35

Farmland Ownership and Its Impact on the Debt Servicing Capacity Among U.S. Married-Couple Farm Households

Farmland ownership among U.S. farm businesses constitutes the major type of farm tenure arrangements as only about 8 percent of all farms are operated under full rental agreements. This research seeks to discern the impact of full-ownership of farmland, which accounts for nearly two-thirds of how farms are operated, on the debt servicing capacity of married U.S. farm couples. Findings based on data from the 2004-2013 Agricultural Resource Management Survey along with regression procedures indicated a strong and statistically significant positive impact of farmland ownership on the ability of these farm households to service their debt. Increases in unemployment rates and the occurrence of the 2008 economic recession were among the factors that were found with a strong adverse impact on debt servicing capacity

Determinants of Financial Performance of Commercial Dairy Farms.

Data from the 1993 Farm Costs and Returns Survey were used in a multi-variate analysis framework to determine factors associated with the financial performance of commercial dairy farm operations. Statistical equivalency tests revealed regional differences in the way extensive indebtedness, size of operation, and labor cost affect net farm incomes. Regional differences were also found in terms of how milk production per cow, per-unit cost of purchased feed, and level of adoption of capital intensive technologies affect per-unit returns. Examination of the variation in the net farm income of commercial dairy farms using the method of coefficients of separate determination identified the size of the operation, regardless of the location of the farm business, as the factor contributing the most to the variability in net farm income. On a per-unit-of-returns basis, factors found most important in explaining the variation in net returns per hundredweight of milk sold were cow's productivity, and per-cow forage production and purchased feed costs.financial performance, net farm income, technological adoption, Lorenz curve, Gini coefficient, Agricultural Finance, Livestock Production/Industries,

RISK MANAGEMENT THROUGH ENTERPRISE DIVERSIFICATION: A FARM-LEVEL ANALYSIS

Enterprise diversification is a self-insuring strategy used by farmers to protect against risk. This paper examines the impact of various farm, operator, and household characteristics on the level of on-farm diversification. Results provide evidence that larger farms are more specialized. Also, farmers who participate in off-farm income and farms located near urban areas are less likely to diversify. Additionally, results also show a significant positive relationship between diversification and farm/crop insurance and sole proprietorships. Finally, there is also evidence that farms that received government payments are more diversified than their counterparts.Farm Management, Risk and Uncertainty,

OFF-FARM WORK PARTICIPATION, OFF-FARM LABOR SUPPLY AND ON-FARM LABOR DEMAND OF U.S. FARM OPERATORS

The paper presents econometric evidence on off-farm work participation, off-farm hours of work, and on-farm hours of work for U.S. farm operators using a national sample of farmers for the USDA's 1991 Farm Costs and Return Survey.Farm Management, Labor and Human Capital, Research Methods/ Statistical Methods,

Wealth Accumulation by Farm Households: Evidence from a National Survey

Wealth affects the economic well-being of the farm households by enabling farm households to secure credit, facilitate intergenerational transfer, and provide for smoothing consumption expenditures in times of income shortfall. This paper examines the factors that are likely to influence wealth accumulation by farm households. Specifically, we use 2001 ARMS data and multivariate regression procedure to estimate two models; one for those farm households whose wealth originates primarily from the farm and another for households with both farm- and nonfarm wealth.Farm Management,

TECHNOLOGY ADOPTION DECISIONS IN DAIRY PRODUCTION AND THE ROLE OF HERD EXPANSION

Technology adoption in dairy production allows for higher milk yield and lower per-unit costs. The importance of herd expansion and other factors to adoption was examined using a multinomial logit model and data from the USDA's 1993 Farm Costs and Returns Survey. Predicted probabilities of adoption were used to simulate the effect of herd expansion on milk production. Results identified age, size, and specialization in dairy production as important in increasing the likelihood of adopting a capital-intense technology. Education and size of operation positively impacted the decision to adopt a management-intense technology. Age, education, credit reserves, size, and increased usage of hired labor positively influenced the decision to adopt a combined capital-and management-intense technology.Livestock Production/Industries, Research and Development/Tech Change/Emerging Technologies,

ADOPTION AND ECONOMIC IMPACT OF SITE-SPECIFIC TECHNOLOGIES IN U.S. AGRICULTURE

A Heckman's two-stage method is used in conjunction with data from the 1998 Agricultural Resource Management Study to estimate the likelihood of adopting a variable rate application technology (VRT) and the impact of such adoption on the per-acre costs of fertilizers and lime in cash grain production. Results highlight the importance of operator's level of human capital and attitude toward risk, along with size and location of farm in impacting VRT adoption decisions. Results also indicate no significant cost-savings attributable to VRT adoption.Farm Management, Research and Development/Tech Change/Emerging Technologies,

IMPACTS OF THE ADOPTION OF GENETICALLY ENGINEERED CROPS ON FARM FINANCIAL PERFORMANCE

The rapid adoption of genetically engineered (GE) crops by U.S. farmers suggests that these technologies have been perceived to improve farm financial performance. This study develops and applies an econometric model to data from corn and soybean producers in order to evaluate the financial impacts of the adoption of GE crops. Results indicate that the adoption of GE crops has had a limited impact on financial performance that varies by crop, type of technology, type of farm, and region of the nation. Factors other than the financial impacts appear to be important reasons for the rapid adoption of GE crops.Bt, corn, farm financial performance, genetically engineered crops, herbicide-tolerant, soybeans, technology adoption, Crop Production/Industries, Research and Development/Tech Change/Emerging Technologies,