Retirement income and savings behavior in farm households

Katherine Lim and Ashley Spalding ()
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Ashley Spalding: Economic Research Service

Agriculture and Human Values, 2025, vol. 42, issue 2, No 3, 643-657

Abstract: Abstract Farmers face unique challenges and opportunities in saving for and maintaining income during retirement relative to other Americans. Farm households have higher income than the average American household but may decide to invest in their farm rather than save for retirement. We use information from the Agricultural Resource Management Survey, the Survey of Consumer Finances, and the Current Population Survey to answer three questions pertaining to the retirement preparedness of farm households. First, what is the composition of income and assets for farm households? Second, how do retirement income and assets for farm households compare to those of all U.S. households and nonfarm self-employed households? Third, do retirement income and assets vary across subpopulations of retirement-age farmers? Our results suggest that, on average, older farm households received smaller shares of their income from retirement sources and had smaller retirement assets than older U.S. households. However, farm households had higher levels of total income and assets with most assets being concentrated in the farm operation. Farm assets may be relatively illiquid compared to retirement assets making it more difficult to rely on them for income during retirement. Among older farm households, those with low-sales farm businesses and Hispanic and non-White operators may be particularly unprepared for retirement relative to other farm households. Our results have implications for farm household well-being as operators’ average age rises. They highlight the similar and distinct challenges farmers face in saving for and maintaining income in retirement relative to other workers.

Keywords: Farm household retirement planning; Retirement income; Retirement savings (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s10460-024-10618-8

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