Agricultural Profits and Farm Household Wealth: A Farm-level Analysis Using Repeated Cross Sections

Steven C. Blank, Kenneth W. Erickson, Richard Nehring, Charles Hallahan
2009 Journal of Agricultural and Applied Economics  
This study examines the relationship between agricultural profits and farm household wealth across locations and farm sizes in U.S. agriculture. A multiperiod household model is used to develop hypotheses for testing. Results indicate that farmland has out-performed nonfarm investments over the past decade. Thus, households may want to keep their farmland to build wealth, even if it requires them to earn off-farm income. The analysis implies that decision will be made based on farm household wealth factors having little to do with agriculture.
doi:10.1017/s1074070800002649 fatcat:go66abyn2vfufhx354ttvhsf6q