Rates of Return in the Farm and Non-farm Sectors: How Do They Compare?

Kenneth W. Erickson (), Charles B Moss () and Ashok K. Mishra

Journal of Agricultural & Applied Economics, 2004, vol. 36, issue 3, pages 789-795

Abstract: This study examines the return on agricultural assets relative to nonfinancial corporate assets in the general economy using aggregate Bureau of Economic Analysis data. Our results indicate that the rate of return on nonfarm assets dominates the rate of return on agricultural assets. The average rate of return on nonfarm assets is higher than the average rate of return on farm assets, and the variance of the rate of return on nonfarm assets is lower than the variance of the rate of return on farm assets. Furthermore, the rate of return on agricultural assets only exceeds the rate of return in the nonfarm sector in 1992.

Keywords: farm sector accounting; nonfarm income; nonfarm sector; rate of return; returns to farm assets (search for similar items in EconPapers)
JEL-codes: Q14 Q18 (search for similar items in EconPapers)

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