IDEAS home Printed from https://ideas.repec.org/p/ags/aaea06/271503.html
   My bibliography  Save this paper

Agricultural Profits and Farm Household Wealth: A Farm-level and Cross-sectional Analysis

Author

Listed:
  • 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. 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.

Suggested Citation

  • Blank, Steven C. & Erickson, Kenneth W. & Nehring, Richard & Hallahan, Charles, 2006. "Agricultural Profits and Farm Household Wealth: A Farm-level and Cross-sectional Analysis," 2006 Annual meeting, July 23-26, Long Beach, CA 271503, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea06:271503
    DOI: 10.22004/ag.econ.271503
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/271503/files/aaea-2006-002.pdf
    Download Restriction: no
    File URL: https://ageconsearch.umn.edu/record/271503/files/aaea-2006-002.pdf?subformat=pdfa
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.271503?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Gordon L. Carriker & Michael R. Langemeier & Ted C. Schroeder & Allen M. Featherstone, 1993. "Propensity to Consume Farm Family Disposable Income from Separate Sources," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(3), pages 739-744.
    2. 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.
    3. Richard Nehring & Jorge Fernandez-Cornejo & David Banker, 2005. "Off-farm labour and the structure of US agriculture: the case of corn/soybean farms," Applied Economics, Taylor & Francis Journals, vol. 37(6), pages 633-649.
    4. Steven C. Blank & Kenneth W. Erickson & Charles B. Moss & Richard Nehring, 2004. "Agricultural Profits and Farm Household Wealth," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(5), pages 1299-1307.
    5. Yue Jin Shi & Timothy T. Phipps & Dale Colyer, 1997. "Agricultural Land Values under Urbanizing Influences," Land Economics, University of Wisconsin Press, vol. 73(1), pages 90-100.
    6. David J. Drozd & Bruce B. Johnson, 2004. "Dynamics of a Rural Land Market Experiencing Farmland Conversion to Acreages: The Case of Saunders County, Nebraska," Land Economics, University of Wisconsin Press, vol. 80(2), pages 294-311.
    7. Joe Dewbre, 2006. "The Impact of Coupled and Decoupled Government Subsidies on Off-Farm Labor Participation of U.S. Farm Operators," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(2), pages 393-408.
    8. Haixiao Huang & Gay Y. Miller & Bruce J. Sherrick & Miguel I. Gómez, 2006. "Factors Influencing Illinois Farmland Values," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(2), pages 458-470.
    9. Dubman, Robert, 2000. "Variance Estimation With USDA's Farm Costs and Returns Surveys and Agricultural Resource Management Study Surveys," Staff Reports 276685, United States Department of Agriculture, Economic Research Service.
    10. Mishra, Ashok K. & El-Osta, Hisham S. & Morehart, Mitchell J. & Johnson, James D. & Hopkins, Jeffrey W., 2002. "Income, Wealth, And The Economic Well-Being Of Farm Households," Agricultural Economic Reports 33967, United States Department of Agriculture, Economic Research Service.
    11. Paul, Catherine J. Morrison & Nehring, Richard, 2005. "Product diversification, production systems, and economic performance in U.S. agricultural production," Journal of Econometrics, Elsevier, vol. 126(2), pages 525-548, June.
    12. Blank, Steven C., 2005. "The Business of an Agricultural “Way of Life”," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 20(2), pages 1-6.
    13. Blank, Steven C. & Erickson, Kenneth W. & Moss, Charles B., 2005. "Profit Patterns Across American Agriculture," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 30(2), pages 1-26, August.
    14. Nigel Key & Michael J. Roberts, 2006. "Government Payments and Farm Business Survival," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(2), pages 382-392.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Erickson, Kenneth W. & Moss, Charles B. & Mishra, Ashok K., 2006. "Farm Wealth Inequality Within and Across States in the United States," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 35(2), pages 1-14, October.
    2. Fernandez-Cornejo, Jorge & Mishra, Ashok K. & Nehring, Richard F. & Hendricks, Chad & Southern, Malaya & Gregory, Alexandra, 2007. "Off-Farm Income, Technology Adoption, And Farm Economic Performance," Economic Research Report 7234, United States Department of Agriculture, Economic Research Service.
    3. Hisham S. El-Osta & Ashok K. Mishra & Mitchell J. Morehart, 2008. "Off-Farm Labor Participation Decisions of Married Farm Couples and the Role of Government Payments," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(2), pages 311-332.
    4. Chintawar, Sachin & Mishra, Ashok K. & Gillespie, Jeffrey M., 2009. "The Impact of Adoption of Genetically Modified Corn on the Off-Farm Labor Supply in the United States," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46832, Southern Agricultural Economics Association.
    5. Reed, L.L. & Kleynhans, Theo E., 2009. "Agricultural land purchases for alternative uses – evidence from two farming areas in the Western Cape province, South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 48(3), pages 1-20, September.
    6. Chang, Hung-Hao & Boisvert, Richard N., 2009. "The Conservation Reserve Program, Off-Farm Work, and Farm Household Technical Efficiencies," Working Papers 57034, Cornell University, Department of Applied Economics and Management.
    7. Andrea Pufahl & Christoph R. Weiss, 2009. "Evaluating the effects of farm programmes: results from propensity score matching," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 36(1), pages 79-101, March.
    8. Yann de Mey & Erwin Wauters & Dierk Schmid & Markus Lips & Mark Vancauteren & Steven Van Passel, 2016. "Farm household risk balancing: empirical evidence from Switzerland," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 43(4), pages 637-662.
    9. Liu, Yue & Yao, Shunbo & Lin, Ying, 2018. "Effect of Key Priority Forestry Programs on off-farm employment: Evidence from Chinese rural households," Forest Policy and Economics, Elsevier, vol. 88(C), pages 24-37.
    10. Nehring, Richard F. & Gillespie, Jeffrey M. & O'Donoghue, Erik J. & Sandretto, Carmen L., 2007. "Dairy Resource Management: A Comparison of Conventional and Pasture-Based Systems," 2007 Annual Meeting, February 4-7, 2007, Mobile, Alabama 34814, Southern Agricultural Economics Association.
    11. Gardner, Justin G. & Nehring, Richard F. & Nelson, Carl H., 2008. "Genetically Modified Crops, an Input Distance Function Approach," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6800, Southern Agricultural Economics Association.
    12. Schilling, Brian J. & Sullivan, Kevin P. & Duke, Joshua M., 2013. "Do Residual Development Options Increase Preserved Farmland Values?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(3), pages 1-17.
    13. Tocco, Barbara & Davidova, Sophia & Bailey, Alastair, 2013. "The Impact of CAP Payments on the Exodus of Labour from Agriculture in Selected EU Member States," Factor Markets Working Papers 180, Centre for European Policy Studies.
    14. Hisham S. El‐Osta & Ashok K. Mishra & Mitchell J. Morehart, 2007. "Determinants of economic well‐being among U.S. farm operator households," Agricultural Economics, International Association of Agricultural Economists, vol. 36(3), pages 291-304, May.
    15. Nehring, Richard & Gillespie, Jeffrey & Hallahan, Charles & Sauer, Johannes, 2015. "The Economics and Productivity of Organic versus Non-organic U.S. Dairy Farms," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196805, Southern Agricultural Economics Association.
    16. Nwoha, Ogbonnaya John & Ahrendsen, Bruce L. & Dixon, Bruce L. & Chavez, Eddie C. & Hamm, Sandra J. & Settlage, Daniel M. & Danforth, Diana M., 2005. "Farm Service Agency Direct Farm Loan Program Effectiveness Study," Research Reports 15772, University of Arkansas, Arkansas Agricultural Experiment Station.
    17. Chang, Hung-Hao & Mishra, Ashok, 2008. "Impact of off-farm labor supply on food expenditures of the farm household," Food Policy, Elsevier, vol. 33(6), pages 657-664, December.
    18. Nehring, Richard & Hallahan, Charlie, 2016. "The Impacts of Off-Farm Income on Farm Efficiency, Scale, and Profitability Cotton Farms," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 230413, Southern Agricultural Economics Association.
    19. Dupraz, Pierre & Latruffe, Laure, 2015. "Trends in family labour, hired labour and contract work on French field crop farms: The role of the Common Agricultural Policy," Food Policy, Elsevier, vol. 51(C), pages 104-118.
    20. Zimmert, Franziska & Zorn, Alexander, 2021. "Direct payments and on-farm employment: evidence from a spatial regression discontinuity design," 61st Annual Conference, Berlin, Germany, September 22-24, 2021 317052, German Association of Agricultural Economists (GEWISOLA).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea06:271503. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.