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

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.


Issue Date:
2010
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/61632
Total Pages:
19
JEL Codes:
D1; J2; Q12
Series Statement:
Selected Paper
11394




 Record created 2017-04-01, last modified 2017-04-04

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