Crop Prices, Agricultural Revenues, and the Rural Economy

Jeremy Weber, Conor Wall, Jason Brown and Tom Hertz (hertz.tom@gmail.com)

MPRA Paper from University Library of Munich, Germany

Abstract: U.S. policy makers often justify agricultural subsidies by stressing that agriculture is the engine of the rural economy. We use the increase in crop prices in the late 2000s to estimate the marginal effect of increased agricultural revenues on local economies in the U.S. Heartland. We find that $1 more in crop revenue generated 64 cents in personal income, with most going to farm proprietors and workers (59 percent) or nonfarmers who own farm assets (36 percent). The evidence suggests a weak link between revenues and nonfarm income or employment, or on population.

Keywords: Agriculture; Crop Revenues; Rural Economy (search for similar items in EconPapers)
JEL-codes: J43 O13 (search for similar items in EconPapers)
Date: 2014-11-05
New Economics Papers: this item is included in nep-agr
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Crop Prices, Agricultural Revenues, and the Rural Economy (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:59716

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