EconPapers    
Economics at your fingertips  
 

The Income Volatility of U.S. Commercial Farm Households

Nigel Key, Daniel L Prager and Christopher B Burns

Applied Economic Perspectives and Policy, 2018, vol. 40, issue 2, 215-239

Abstract: This study uses a newly created panel dataset drawn from the 1997 to 2013 Agricultural Resource Management Survey to provide the first national estimates of income volatility for commercial farm households in the United States. Results show that the income of commercial farm households is substantially more volatile than that of all U.S. households—though the volatility of farm income is not more volatile than income from nonfarm self-employment. Using a regression analysis, we identify operator, operation, and regional characteristics associated with higher income volatility, providing information that could improve targeting of risk-mitigating programs. We find that farm income volatility has declined for farms specializing in program crops in recent decades, supporting the hypothesis that the expansion of the federal crop insurance program helped reduce farm income risk.

Keywords: Income volatility; income variation; farm income; off-farm income; risk (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://hdl.handle.net/10.1093/aepp/ppy006 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:apecpp:v:40:y:2018:i:2:p:215-239.

Ordering information: This journal article can be ordered from
http://www.oup.co.uk/journals

Access Statistics for this article

Applied Economic Perspectives and Policy is currently edited by Timothy Park, Tomislav Vukina and Ian Sheldon

More articles in Applied Economic Perspectives and Policy from Agricultural and Applied Economics Association Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().

 
Page updated 2021-01-14
Handle: RePEc:oup:apecpp:v:40:y:2018:i:2:p:215-239.