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Crop Prices, Agricultural Revenues, and the Rural Economy

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Listed:
  • Weber, Jeremy
  • Wall, Conor
  • Brown, Jason
  • Hertz, Tom

Abstract

U.S. policy makers often justify agricultural subsidies by stressing that agriculture is the engine of the rural economy. We use the increase in crop prices in the late 2000s to estimate the marginal effect of increased agricultural revenues on local economies in the U.S. Heartland. We find that $1 more in crop revenue generated 64 cents in personal income, with most going to farm proprietors and workers (59 percent) or nonfarmers who own farm assets (36 percent). The evidence suggests a weak link between revenues and nonfarm income or employment, or on population.

Suggested Citation

  • Weber, Jeremy & Wall, Conor & Brown, Jason & Hertz, Tom, 2014. "Crop Prices, Agricultural Revenues, and the Rural Economy," MPRA Paper 59716, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:59716
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    References listed on IDEAS

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    Cited by:

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    3. Jason Brown & Timothy Fitzgerald & Jeremy G. Weber, 2016. "Asset Ownership, Windfalls, and Income: Evidence from Oil and Gas Royalties," Research Working Paper RWP 16-12, Federal Reserve Bank of Kansas City.
    4. Weerasooriya, Senal A. & Reimer, Jeffrey J., 2016. "General Equilibrium Analysis of the Farm Bill: SNAP versus Farm Programs," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236076, Agricultural and Applied Economics Association.
    5. Ifft, Jennifer & Jodlowski, Margaret, 2022. "Is ICE freezing US agriculture? Farm-level adjustment to increased local immigration enforcement," Labour Economics, Elsevier, vol. 78(C).

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    More about this item

    Keywords

    Agriculture; Crop Revenues; Rural Economy;
    All these keywords.

    JEL classification:

    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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