Understanding U.S. Farm Exits, Farm Survival, and the Role of Commodity Payments
Understanding U.S. Farm Exits, Farm Survival, and the Role of Commodity Payments

Author: Lucas A. Hamilton

Publisher:

Published: 2010

Total Pages: 0

ISBN-13: 9781616689957

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About 717,000 farms in the U.S. went out of business, or exited, between 1992 and 1997, but the total number of farms declined by just 13,400 because the number of entries (703,700 farms) nearly equalled exits. In fact, the farm count has remained relatively stable since the 1974 Census, reflecting exits and entries essentially in balance. This book explores and studies U.S. farm exits, farm survival and the role of commodity payments.

Commodity Payments, Farm Business Survival, and Farm Size Growth
Commodity Payments, Farm Business Survival, and Farm Size Growth

Author: Nigel David Key

Publisher:

Published: 2007

Total Pages: 52

ISBN-13:

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In the last 25 years, U.S. crop farms have steadily declined in number and grown in average size, as production has shifted to larger operations. Larger farms tend to receive more commodity program payments because most payments are tied to a farm's current or historical production, but whether payments have contributed to farm growth is uncertain. This study uses farm-level data from the census of agriculture to determine whether there is a statistical relationship between farm commodity program payments and greater concentration in production. The analysis indicates that, at the regional level, higher commodity program payments per acre are associated with subsequent farm growth. Also, higher payments per acre are associated with higher rates of farm survival and growth.

Understanding U.S. Farm Exits
Understanding U.S. Farm Exits

Author: Robert A. Hoppe

Publisher:

Published: 2006

Total Pages: 36

ISBN-13:

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The rate at which U.S. farms go out of business, or exit farming, is about 9 or 10 percent per year, comparable to exit rates for nonfarm small businesses in the United States. U.S. farms have not disappeared because the rate of entry into farming is nearly as high as the exit rate. The relatively stable farm count since the 1970s reflects exits and entries essentially in balance. The probability of exit is higher for recent entrants than for older, more established farms. Farms operated by Blacks are more likely to exit than those operated by Whites, but the gap between Black and White exit probabilities has declined substantially since the 1980s. Exit probabilities differ by specialization, with beef farms less likely to exit than cash grain or hog farms.

Why Farmers Quit
Why Farmers Quit

Author: Stephan J. Goetz

Publisher:

Published: 2020

Total Pages: 0

ISBN-13:

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We identify the effects of alternative explanatory variables on the propensity of U.S. farmers to cease farming, with a particular emphasis on understanding the roles of off-farm employment and federal farm program payments. Conventional ordinary least squares analysis using all counties suggests that off-farm employment has no statistical effect on the (net) number of farmers quitting between 1987 and 1997, ceteris paribus. A more refined analysis, which separates counties losing farmers from those that gained farmers, reveals subtle and less clear-cut effects of off-farm employment (and federal program payments) on farm exits.