Does “Convenience Agriculture” Affect Off‐farm Labor Allocation Decisions?

The objective of this study is to examine the effect of adoption intensity of GM crops on off‐farm labor supply by farm households. Using ARMS data in 2004, 2005 and 2006, we estimate a two stage simultaneous Tobit model and find that adoption intensity of GM crops has a negative impact on off‐farm labor supply by operators and a positive impact on off‐farm labor supply by spouse. This may be due to the comparative advantage of operators and spouses. Our results find that GM crops adoption has different but significant implications on off‐farm labor supply by operators and spouses and underscores the importance of understanding farm households’ decisions to explain behaviors of farm businesses in the United States.Technology Adoption, Two stage simultaneous Tobit model, GM Crops, Off‐farm labor, Agricultural and Food Policy, Labor and Human Capital, Q10, Q12,