Crop Prices, Agricultural Revenues, and the Local Economy of the U.S. Heartland
AbstractEconomists broadly recognize that the U.S. rural economy is no longer a farm economy, yet policy makers often justify support for agriculture by stressing the sector’s importance to the rural economy. We use the historically high 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 in additional crop revenue generated 67 cents in local income, most of which went to farm proprietors and workers (58 percent) or nonfarmers who own farm assets (36 percent). There is no evidence of an effect on nonfarm income or employment, or on population.
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Bibliographic InfoPaper provided by Agricultural and Applied Economics Association in its series 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. with number 150404.
Date of creation: 2013
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Agriculture; Crop Revenues; Local Economy; Community/Rural/Urban Development; Crop Production/Industries; Demand and Price Analysis; Public Economics; O13; J43;
Find related papers by JEL classification:
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
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