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Off-Farm Income, Technology Adoption, And Farm Economic Performance

Author

Listed:
  • Fernandez-Cornejo, Jorge
  • Mishra, Ashok K.
  • Nehring, Richard F.
  • Hendricks, Chad
  • Southern, Malaya
  • Gregory, Alexandra

Abstract

The economic well-being of most U.S. farm households depends on income from both onfarm and off-farm activities. Consequently, for many farm households, economic decisions (including technology adoption and other production decisions) are likely to be shaped by the allocation of managerial time among such activities. While time allocation decisions are usually not measured directly, we observe the outcomes of such decisions, such as onfarm and off-farm income. This report finds that a farm operator’s off-farm employment and off-farm income vary inversely with the size of the farm. Operators of smaller farm operations improve their economic performance by compensating for the scale disadvantages of their farm business with more off-farm involvement. Off-farm work reduces farm-level technical efficiency, but increases household-level technical efficiency. And adoption of agricultural innovations that save managerial time is associated with higher off-farm income.

Suggested Citation

  • Fernandez-Cornejo, Jorge & Mishra, Ashok K. & Nehring, Richard F. & Hendricks, Chad & Southern, Malaya & Gregory, Alexandra, 2007. "Off-Farm Income, Technology Adoption, And Farm Economic Performance," Economic Research Report 7234, United States Department of Agriculture, Economic Research Service.
  • Handle: RePEc:ags:uersrr:7234
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    File URL: http://purl.umn.edu/7234
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. MacDonald, James M., 2011. "Why Are Farms Getting Larger? The Case Of The U.S," 51st Annual Conference, Halle, Germany, September 28-30, 2011 115361, German Association of Agricultural Economists (GEWISOLA).
    2. Yann de Mey & Erwin Wauters & Dierk Schmid & Markus Lips & Mark Vancauteren & Steven Van Passel, 2016. "Farm household risk balancing: empirical evidence from Switzerland," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 43(4), pages 637-662.
    3. Fernandez-Cornejo, Jorge & Nehring, Richard F. & Erickson, Kenneth W., 2007. "Off-Farm Work and Economic Performance: Comparing Crop and Livestock Farms," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN 9904, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Frisvold, George, 2010. "Resistance Management and Sustainable Use of Agricultural Biotechnology," 14th ICABR Conference, June 16-18, 2010, Ravello, Italy 188091, International Consortium on Applied Bioeconomy Research (ICABR).
    5. Chang, Hung-Hao & Wen, Fang-I, 2008. "Off-farm Work, Technical Efficiency, and Production Risk: Empirical Evidence from a National Farmer Survey in Taiwan," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6164, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Štefan Bojnec & Imre Fertő, 2013. "Farm income sources, farm size and farm technical efficiency in Slovenia," Post-Communist Economies, Taylor & Francis Journals, vol. 25(3), pages 343-356, September.
    7. de Mey, Yann & Wauters, Erwin & Lips, Markus & Schmid, Dirk & Vancauteren, Mark & Van Passel, Steven, 2014. "Farm household risk balancing in Switzerland and Belgium: an econometric and survey approach," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 186678, European Association of Agricultural Economists.
    8. repec:oup:revage:v:31:y:2009:i:4:p:793-813. is not listed on IDEAS
    9. Benjamin Tetteh Anang, 2017. "Effect of non-farm work on agricultural productivity: Empirical evidence from northern Ghana," WIDER Working Paper Series 038, World Institute for Development Economic Research (UNU-WIDER).
    10. repec:kap:jfamec:v:39:y:2018:i:1:d:10.1007_s10834-017-9543-6 is not listed on IDEAS
    11. Ngokkuen, Chuthaporn & Grote, Ulrike, 2010. "Determinants Influencing Adoption of Geographical Indication Certification: The Case of Rice Cultivation in Thailand," Proceedings of the German Development Economics Conference, Hannover 2010 52, Verein für Socialpolitik, Research Committee Development Economics.
    12. William D. McBride & Catherine Greene, 2009. "Costs of Organic Milk Production on U.S. Dairy Farms," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(4), pages 793-813.
    13. Tejaswi, Pillenahalli Basavarajappa, 2008. "Non-Timber Forest Products (NTFPs) for Food and Livelihood Security: An Economic Study of Tribal Economy in Western Ghats of Karnataka, India," Miscellaneous Papers 54184, Agecon Search.
    14. Khanal, Aditya R. & Mishra, Ashok & Koirala, Krishna H., 2014. "Participation in Agritourism and Off-farm Work: Do Small Farms Benefit?," 2014 Annual Meeting, February 1-4, 2014, Dallas, Texas 162453, Southern Agricultural Economics Association.
    15. Steve W. Martinez, 2016. "Policies Supporting Local Food in the United States," Agriculture, MDPI, Open Access Journal, vol. 6(3), pages 1-13, August.

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