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The Role of Agriculture and Farm Household Diversification in the US Rural Economy

Thomas G. Johnson

Chapter 20 in Rural Policies and Employment:TransAtlantic Experiences, 2019, pp 315-329 from World Scientific Publishing Co. Pte. Ltd.

Abstract: This chapter explores the consequences of US farm and farm family diversification strategies, including the consequences for their rural communities. The chapter first reviews recent changes in US agriculture and rural communities, with a focus on the changing role of non-farm and off-farm activities of farm families. The evidence is strong that diversification strategies produce benefits for the farms, the farm families, and the communities where they live. Diversification has allowed farm families to increase and stabilize their incomes, invest more in their farms, and connect to their communities. Communities benefit from stronger and more stable labor forces, stronger tax bases, increased range of services, enhanced recreational opportunities, and better access to quality food. As external pressures from globalization, demographic change and climate change continue to challenge rural economies, adaptation and diversification will continue to be an important strategy. Policymakers should explore policies to support and encourage diversification.

Keywords: Rural Areas; Rural Development; Agriculture; Employment; Labor; Jobs; Common Agricultural Policy; European Union; United States (search for similar items in EconPapers)
JEL-codes: P25 Q18 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (1)

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