IDEAS home Printed from https://ideas.repec.org/a/ags/uersaw/338873.html
   My bibliography  Save this article

Farm Households' Consumption of Market Facilitation Payments Differed by Farm Type and Year

Author

Listed:
  • Williams, David J.
  • Todd, Jessica E.

Abstract

Farm incomes are volatile and farm households employ a variety of financial strategies to generate the necessary cash flows to maintain a standard of living that is based on their expected average income over time—a process called “consumption smoothing.” Households save, invest, and work fewer hours off the farm when farm income is higher than expected and spend down their savings, borrow, disinvest, or work more at off-farm jobs when farm income is lower than expected. The marginal propensity to consume (MPC) out of income—how much an additional dollar of income increases consumption spending—tells researchers how well households are able to smooth their consumption. The larger the MPC, the less the household is smoothing consumption.

Suggested Citation

  • Williams, David J. & Todd, Jessica E., 2022. "Farm Households' Consumption of Market Facilitation Payments Differed by Farm Type and Year," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, vol. 2022, November.
    • Handle: RePEc:ags:uersaw:338873
    DOI: 10.22004/ag.econ.338873
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/338873/files/Farm%20Households%E2%80%99%20Consumption%20of%20Market%20Facilitation%20Payments%20Different%20by%20Farm%20Type%20and%20Year.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.338873?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:uersaw:338873. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/ersgvus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.