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Determinants of Farm Household Income Diversification in the United States: Evidence from Farm-Level Data

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  • Mishra, Ashok K.
  • Erickson, Kenneth W.
  • Harris, James Michael
  • Hallahan, Charles B.
  • Uematsu, Hiroki

Abstract

This study examines the determinants of income diversification of farm households in the United States. Farm households allocate their time between farm and off-farm activities to help stabilized household income (consumption). What characterizes those households who engage in off-farm activities? Is there any pattern over time? Using 1999, 2003 and 2007 farm-level data from the USDA’s Agricultural Resource Management Survey (ARMS), this study estimates intensity of off-farm income (or income diversification). The results show that older operators, full owners, and small farms have higher intensity of off-farm income in total household income. In contrast, dairy farms, vertically coordinated farms and farms located in the Southern and Pacific regions have lower intensity of off-farm income. In other words, household incomes of these farms are less likely to be diversified.

Suggested Citation

  • Mishra, Ashok K. & Erickson, Kenneth W. & Harris, James Michael & Hallahan, Charles B. & Uematsu, Hiroki, 2010. "Determinants of Farm Household Income Diversification in the United States: Evidence from Farm-Level Data," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61632, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea10:61632
    DOI: 10.22004/ag.econ.61632
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    References listed on IDEAS

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    1. Hisham El-Osta & Ashok Mishra & Mary Ahearn, 2004. "Labor Supply by Farm Operators Under “Decoupled” Farm Program Payments," Review of Economics of the Household, Springer, vol. 2(4), pages 367-385, August.
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    Cited by:

    1. Boncinelli, Fabio & Bartolini, Fabio & Casini, Leonardo & Brunori, Gianluca, 2014. "Investigating determinants of agricultural income diversification: an exploratory case study in Tuscany," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182849, European Association of Agricultural Economists.
    2. Jianmei Zhao & Peter Barry, 2013. "Implications of different income diversification indexes: the case of rural China," Economics and Business Letters, Oviedo University Press, vol. 2(1), pages 13-20.
    3. David J. Williams & Brady E. Brewer & Jessica E. Todd, 2022. "Farm households' consumption of ad hoc program payments," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(3), pages 1465-1481, September.
    4. Tao Xu, 2017. "Income Diversification and Rural Consumption—Evidence from Chinese Provincial Panel Data," Sustainability, MDPI, vol. 9(6), pages 1-14, June.
    5. Bartolini, Fabio & Andreoli, Maria & Brunori, Gianluca, 2014. "Explaining determinants of the on-farm diversification: empirical evidence from Tuscany region," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 3(2), pages 1-21, August.
    6. Manzoor H. Dar & Ritadhi Chakravorty & Showkat A. Waza & Mayank Sharma & Najam W. Zaidi & Amrendra N. Singh & Umesh S. Singh & Abdelbagi M. Ismail, 2017. "Transforming rice cultivation in flood prone coastal Odisha to ensure food and economic security," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 9(4), pages 711-722, August.
    7. Manzoor H. Dar & Dilruba A. Bano & Showkat A. Waza & Najam W. Zaidi & Asma Majid & Asif B. Shikari & M. Ashraf Ahangar & Mosharaf Hossain & Arvind Kumar & Uma S. Singh, 2021. "Abiotic Stress Tolerance-Progress and Pathways of Sustainable Rice Production," Sustainability, MDPI, vol. 13(4), pages 1-19, February.
    8. Jianmei Zhao & Peter J. Barry, 2014. "Income Diversification of Rural Households in China," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 62(3), pages 307-324, September.

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