Optimal Farm Household Labor Allocation of New and Beginning Vegetable Operations

Allyssa Renee Mark, Kimberly Morgan, Clinton L. Neill and Kim Niewolny

Journal of Agribusiness, 2019, vol. 37, issue 2

Abstract: In the United States, rising average ages of principal farm operators, declining numbers of new farmers, financial stressors, and labor burdens result in the majority of farmers relying on off-farm income to support their households. We use mixed integer programming scenario analysis to balance on-and off-farm labor to optimize profitability of small-scale vegetable operations. We find the opportunity cost for off-farm labor must be at least $40,622.40 per year; otherwise, the farmer will choose to work only on-farm. Educators and policymakers are encouraged to address the need for information to aid beginning farmers in making labor allocation decisions.

Keywords: Agribusiness; Labor and Human Capital (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:ags:jloagb:302414

DOI: 10.22004/ag.econ.302414

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