Structural changes in U.S. agriculture: Financial performance of farms in transition

Abstract

This study examines the financial performance and stress experienced by beginning and retired farms in the U.S. Using USDA’s ARMS data, probit models are estimated to study the personal and farm characteristics that affect whether or not the financial ratios fall into critical zones. The results show that older farmers and larger farms are less likely to experience financial stress while hobby farms and livestock farms are more likely to experience financial stress. The results for beginning and retired farmers indicate fewer significant effects.beginning farmers, financial performance, financial stress, retired farmers, transitioning farmers, Agricultural and Food Policy, Farm Management, Land Economics/Use,