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The Conservation Reserve Program, Off-Farm Work, and Farm Household Technical Efficiencies

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  • Chang, Hung-Hao
  • Boisvert, Richard N.

Abstract

Using data from a national survey of farm households in the United States, this paper examines the effects of farm households’ decisions to participate in the Conservation Reserve Program (CRP) and to work off the farm on the technical efficiency of farm household production. After controlling for the self selection bias in estimating the multiple output-oriented distance functions, results show that operators’ decisions to work off the farm (both separately and combined with participation in CRP) lead to higher technical efficiencies for farm household production— implying improvements in the resource allocation between farm and other productive activities by farm households. The technical efficiencies of household production of those farm households participating only in the CRP are lower.

Suggested Citation

  • Chang, Hung-Hao & Boisvert, Richard N., 2009. "The Conservation Reserve Program, Off-Farm Work, and Farm Household Technical Efficiencies," Working Papers 57034, Cornell University, Department of Applied Economics and Management.
    • Handle: RePEc:ags:cudawp:57034
    DOI: 10.22004/ag.econ.57034
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    2. Md.Salamun Rashidin & Sara Javed & Bin Liu & Wang Jian, 2020. "Ramifications of Households’ Nonfarm Income on Agricultural Productivity: Evidence From a Rural Area of Pakistan," SAGE Open, , vol. 10(1), pages 21582440209, January.
    3. Tur Cardona, Juan & Wailes, Eric J. & Dixon, Bruce L. & Danforth, Diana M., 2012. "Analysis of Participation in Multifunctional Agriculture: U.S. Rice Farms," Staff Papers 119750, University of Arkansas, Department of Agricultural Economics and Agribusiness.
    4. Tur Cardona, Juan & Wailes, Eric J. & Dixon, Bruce L. & Danforth, Diana M., 2012. "Analysis of Participation in Multifunctional Agriculture: U.S. Rice Farms," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119768, Southern Agricultural Economics Association.
    5. Muhammad Amjed Iqbal & Muhammad Rizwan & Azhar Abbas & Muhammad Sohail Amjad Makhdum & Rakhshanda Kousar & Muhammad Nazam & Abdus Samie & Nasir Nadeem, 2021. "A Quest for Livelihood Sustainability? Patterns, Motives and Determinants of Non-Farm Income Diversification among Agricultural Households in Punjab, Pakistan," Sustainability, MDPI, vol. 13(16), pages 1-14, August.
    6. Xie, Xianxiong & Cui, Yu & Yao, Liuyang & Ni, Qi & Khan, Sufyan Ullah & Zhao, Minjuan, 2022. "Does fallow policy affect rural household income in poor areas? A quasi-experimental evidence from fallow pilot area in Northwest China," Land Use Policy, Elsevier, vol. 120(C).

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    Agribusiness; Agricultural Finance; Farm Management;
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