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Deconstructing agricultural labour: a reflection on negative farm income

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  • Stefan Mann

    (Agroscope, Tänikon, Switzerland)

Abstract

This paper proceeds from the premise that five per cent of Swiss farms currently generate a financial loss. On average, this group of farms realizes a fairly high off-farm income. Challenging the notion of a ‘fair’ or ‘adequate’ agricultural income, we tackle the question of whether aiming to achieve the combination of negative farm income plus adequate off-farm income can be a rational strategy. An application of the Activity Choice Model answers this question in the affirmative. One of four interviews conducted with farmers having a negative agricultural income is analysed using objective hermeneutics. Whilst this approach shows that non-monetary utility has many dimensions, it primarily confirms the premise that negative farm income can be a rational strategy if combined with profitable off-farm work.Classification-JEL: R31, C14, Q50

Suggested Citation

  • Stefan Mann, 2015. "Deconstructing agricultural labour: a reflection on negative farm income," Journal of Socio-Economics in Agriculture (Until 2015: Yearbook of Socioeconomics in Agriculture), Swiss Society for Agricultural Economics and Rural Sociology, vol. 7(1), pages 70-75.
  • Handle: RePEc:cha:ysa001:v:7:y:2014:i:1:p:70-75
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    References listed on IDEAS

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    1. Ziegenspeck, Svantje & Hardter, Ulf & Schraml, Ulrich, 2004. "Lifestyles of private forest owners as an indication of social change," Forest Policy and Economics, Elsevier, vol. 6(5), pages 447-458, August.
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    More about this item

    Keywords

    Activity choice; Negative incomes; Swiss agriculture;
    All these keywords.

    JEL classification:

    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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