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Income, Wealth, And The Economic Well-Being Of Farm Households

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Author Info
Mishra, Ashok K.
El-Osta, Hisham S.
Morehart, Mitchell J.
Johnson, James D.
Hopkins, Jeffrey W.
Abstract

Agricultural policy is rooted in the 1930s notion that providing transfers of money to the farm sector translates into increased economic well-being of farm families. This report shows that changes in income for the farm sector or for any particular group of farm businesses do not necessarily reflect changes confronting farm households. Farm households draw income from various sources, including off-farm work, other businesses operated, and —increasingly — nonfarm investments. Likewise, focus on a single indicator of well-being, like income, overlooks other indicators such as the wealth held by the household and the level of consumption expenditures for health care, food, housing, and other items. Using an expanded definition of economic well-being, we show that farm households as a whole are relatively better off than the average U.S. household, but that about 6 percent remain economically disadvantaged relative to the rest of the population.

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Paper provided by United States Department of Agriculture, Economic Research Service in its series Agricultural Economics Reports with number 33967.

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Date of creation: 2002
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Handle: RePEc:ags:uerser:33967

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Related research
Keywords: Consumption; farm households; income; wealth; well-being; off-farm employment; Consumer/Household Economics;

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  1. E. Phimister & D. Roberts, 2006. "The Effect of Off-farm Work on the Intensity of Agricultural Production," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 34(4), pages 493-515, August. [Downloadable!] (restricted)
  2. Bills, Nelson, 2007. "Fifty Years of Farmland Protection Legislation in the Northeast: Persistent Issues and Emergent Research Opportunities," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 36(2), October. [Downloadable!]
  3. Findeis, Jill & Swaminathan, Hema & Jayaraman, Anuja, 2003. "Agricultural Household-Firm Units: Adjustments to Change," Policy Reform and Adjustment Workshop, October 23-25, 2003, Imperial College London, Wye Campus 15738, International Agricultural Policy Reform and Adjustment Project (IAPRAP). [Downloadable!]
  4. Erickson, Kenneth W. & Moss, Charles B. & Mishra, Ashok K., 2006. "Farm Wealth Inequality Within and Across States in the United States," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 35(2), October. [Downloadable!]
  5. Goetz, Stephan J., 2003. "Critical Development Issues In Rural Economies," Agricultural Outlook Forum 2003 33199, United States Department of Agriculture, Agricultural Outlook Forum. [Downloadable!]
  6. Hung-Hao, Chang & Boisvert, Richard & Tauer, Loren, 2008. "Explaining Changes in the Distribution of Annual Dairy Farm Income over Time," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6544, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  7. Lagerkvist, Carl Johan & Larsen, Karin & Olson, Kent, 2006. "Off-farm income and farm capital accumulation: a farm-level data analysis," 2006 Annual meeting, July 23-26, Long Beach, CA 21480, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  8. Vergara, Oscar & Coble, Keith H. & Patrick, George F. & Knight, Thomas O. & Baquet, Alan E., 2004. "Farm Income Variability and the Supply of Off-Farm Labor by Limited-Resource Farmers," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(01), August. [Downloadable!]
  9. Whitaker, James B. & Effland, Anne, 2009. "Income Stabilization Through Government Payments: How Is Farm Household Consumption Affected?," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 38(1), April. [Downloadable!]
  10. Smith, Katherine R., 2004. "U.S. Agricultural Policy in 2004: Ripe for Reform, Repackaging, or Routine?," IAPRAP\IATRC Summer Symposium, Adjusting to Domestic and International Agricultural Reform in Industrial Countries, June 6-7, 2004, Philadelphia, PA 15767, International Agricultural Policy Reform and Adjustment Project (IAPRAP). [Downloadable!]
  11. Biggs, Brian & Murray, Paul & Dubman, Robert & Erickson, Kenneth & Korb, Penni, 2004. "Recent Changes in Farm Structure: A Canada-U.S. Comparison," CAFRI: Current Agriculture, Food and Resource Issues, Canadian Agricultural Economics Society, issue 05. [Downloadable!]
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