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Agricultural Profits and Farm Household Wealth: A Farm-level Analysis Using Repeated Cross Sections

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  • Blank, Steven C.
  • Erickson, Kenneth W.
  • Nehring, Richard
  • Hallahan, Charles

Abstract

This study examines the relationship between agricultural profits and farm household wealth across locations and farm sizes in U.S. agriculture. A multiperiod household model is used to develop hypotheses for testing. Results indicate that farmland has out-performed nonfarm investments over the past decade. Thus, households may want to keep their farmland to build wealth, even if it requires them to earn off-farm income. The analysis implies that decision will be made based on farm household wealth factors having little to do with agriculture.

Suggested Citation

  • Blank, Steven C. & Erickson, Kenneth W. & Nehring, Richard & Hallahan, Charles, 2009. "Agricultural Profits and Farm Household Wealth: A Farm-level Analysis Using Repeated Cross Sections," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 41(1), pages 207-225, April.
    • Handle: RePEc:cup:jagaec:v:41:y:2009:i:01:p:207-225_00
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    References listed on IDEAS

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    1. Livanis, Grigorios T. & Moss, Charles B. & Breneman, Vincent E. & Nehring, Richard F., 2005. "Urban Sprawl and Farmland Prices," Working Papers 15657, University of Florida, International Agricultural Trade and Policy Center.
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    Cited by:

    1. Harris, James Michael & Blank, Steven C. & Erickson, Kenneth W. & Hallahan, Charles B., 2010. "Off-farm Income and Investments in Farm Assets: A Double Hurdle Approach," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61531, Agricultural and Applied Economics Association.
    2. Di Vita, Giuseppe & D'Amico, Mario, 2013. "Origin Designation And Profitability For Small Wine Grape Growers: Evidence From A Comparative Study," Economics of Agriculture, Institute of Agricultural Economics, vol. 60(1), pages 1-18, March.
    3. Agata Malak-Rawlikowska & Monika Gębska & Robert Hoste & Christine Leeb & Claudio Montanari & Michael Wallace & Kees de Roest, 2021. "Developing a Methodology for Aggregated Assessment of the Economic Sustainability of Pig Farms," Energies, MDPI, vol. 14(6), pages 1-25, March.
    4. van der Meulen, H.A.B. & Dolman, M.A. & Jager, J.H. & Venema, G.S., 2014. "The impact of farm size on sustainability of Dutch dairy farms," International Journal of Agricultural Management, Institute of Agricultural Management, vol. 3(2), pages 1-5, January.
    5. Steven C. Blank & Danny Klinefelter, 2012. "Keeping ARMS relevant: increasing its usability," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 72(2), pages 222-232, July.
    6. van der Meulen, H.A.B. & Dolman, M.A. & Jager, J.H. & Venema, G.S., 2013. "PR - The Impact Of Farm Size On Sustainability Of Dutch Dairy Farms," 19th Congress, Warsaw, Poland, 2013 345684, International Farm Management Association.

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    More about this item

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance

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