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Why Farmers Quit: A County-Level Analysis
Authors:Stephan J Goetz  & David L Debertin
Institution:Department of Agricultural Economics and Rural Sociology at the Pennsylvania State University and Northeast Regional Center for Rural Development,;Department of Agricultural Economics, University of Kentucky
Abstract:We identify the effects of alternative explanatory variables on the propensity of U.S. farmers to cease farming, with a particular emphasis on understanding the roles of off-farm employment and federal farm program payments. Conventional ordinary least squares analysis using all counties suggests that off-farm employment has no statistical effect on the (net) number of farmers quitting between 1987 and 1997, ceteris paribus . A more refined analysis, which separates counties losing farmers from those that gained farmers, reveals subtle and less clear-cut effects of off-farm employment (and federal program payments) on farm exits.
Keywords:economic development  farm exits  off-farm employment
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