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The Dynamics of Farm Incomes: Panel data analysis using the Farm Accounts Survey

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  • Euan Phimister
  • Deborah Roberts
  • Alana Gilbert

Abstract

This paper uses longitudinal information from the Scottish Farm Accounts Survey to explore the dynamics of Scottish farm incomes between 1988/89 and 1999/2000. Both the Net Farm Income and Cash Income of farms are considered. The results show high levels of income variability and income mobility within Scottish agriculture. Although exit rates from the lowest income groups remain relatively high even when spells of low income have lasted a number of years, there is evidence of farms with persistent low farm income and farms experiencing repeated spells of low‐income. Smaller farm size and having a farmer aged over 65 increase both the probability that a farm will fall into the lowest income group and the length of time spent in that income group. Further the results suggest that the impact of the post‐1997 agricultural recession on income mobility depended on the income status of the farm when the recession began.

Suggested Citation

  • Euan Phimister & Deborah Roberts & Alana Gilbert, 2004. "The Dynamics of Farm Incomes: Panel data analysis using the Farm Accounts Survey," Journal of Agricultural Economics, Wiley Blackwell, vol. 55(2), pages 197-220, July.
    • Handle: RePEc:bla:jageco:v:55:y:2004:i:2:p:197-220
    DOI: 10.1111/j.1477-9552.2004.tb00093.x
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    References listed on IDEAS

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    1. Francesco Devicienti, 2002. "Poverty persistence in Britain: A multivariate analysis using the BHPS, 1991–1997," Journal of Economics, Springer, vol. 77(1), pages 307-340, December.
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    1. Katarzyna Smędzik-Ambroży & Marta Guth & Sebastian Stępień & Agnieszka Brelik, 2019. "The Influence of the European Union’s Common Agricultural Policy on the Socio-Economic Sustainability of Farms (the Case of Poland)," Sustainability, MDPI, vol. 11(24), pages 1-15, December.
    2. Enjolras, Geoffroy & Capitanio, Fabian & Aubert, Magali & Adinolfi, Felice, 2012. "Direct payments, crop insurance and the volatility of farm income. Some evidence in France and in Italy," 123rd Seminar, February 23-24, 2012, Dublin, Ireland 122478, European Association of Agricultural Economists.
    3. Jan Fałkowski & Maciej Jakubowski & Paweł Strawiński, 2014. "Returns from income strategies in rural Poland," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 22(1), pages 139-178, January.
    4. Geoffroy Enjolras & Magali Aubert, 2020. "How does crop insurance influence pesticide use? Evidence from French farms," Review of Agricultural, Food and Environmental Studies, INRA Department of Economics, vol. 101(4), pages 461-485.
    5. Geoffroy Enjolras & Magali Aubert, 2018. "Does crop insurance lead to better environmental practices? Evidence from French farms," Post-Print hal-02048349, HAL.
    6. Paul Allanson & Kalina Kasprzyk & Andrew P. Barnes, 2017. "Income Mobility and Income Inequality in Scottish Agriculture," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(2), pages 471-493, June.
    7. repec:ags:ijag24:344512 is not listed on IDEAS
    8. Paul Smyth & Anne Marie Butler & Thia Hennessy, 2008. "Explaining the variability in the Economic Performance of Irish Dairy Farmers 1998-2006," Working Papers 0817, Rural Economy and Development Programme,Teagasc.
    9. Runowski, Henryk, 2021. "Types And Structure Of Budget Support Instruments For Agricultural Producers In The Scope Of Cap," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2021(1).
    10. Runowski, Henryk, 2020. "Dilemmas Of Measuring And Evaluating Income In Agriculture In The European Union," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2020(1).
    11. Gamel Abdul-Nasser Salifu, 2019. "The Political Economy Dynamics of Rural Household Income Diversification: A Review of the International Literature," Research in World Economy, Research in World Economy, Sciedu Press, vol. 10(3), pages 273-290, December.
    12. Runowski, Henryk, 2018. "Differences in income of the agricultural population between European Union countries and directions of their changes," Village and Agriculture (Wieś i Rolnictwo), Polish Academy of Sciences (IRWiR PAN), Institute of Rural and Agricultural Development, vol. 179(2), June.
    13. Berkeley Hill, 2008. "Some Economics of Public Statistics," Journal of Agricultural Economics, Wiley Blackwell, vol. 59(3), pages 387-420, September.
    14. Maria Marino & Benedetto Rocchi & Simone Severini, 2021. "Conditional Income Disparity between Farm and Non‐farm Households in the European Union: A Longitudinal Analysis," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(2), pages 589-606, June.
    15. O'Neill,Stephen & Loughrey, Jason & Hynes, Stephen & O'Donoghue, Cathal & Hanrahan, Kevin, 2017. "The Redistributive Impact of EU Farm Payment Reforms in the UK and Ireland," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261107, European Association of Agricultural Economists.

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