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Nonpecuniary Benefits to Farming: Implications for Supply Response to Decoupled Payments

Abstract::
We develop a household model wherein farmers allocate labor to maximize utility from leisure, consumption, and nonpecuniary benefits from farming. The model shows that farmers with decreasing marginal utility of income respond to higher decoupled payments by decreasing off-farm labor and increasing farm labor, resulting in greater agricultural output. We then estimate the difference between farm and off-farm returns to labor using data from three nationally representative farm household surveys. The finding of a large on-farm/off-farm wage differential provides compelling evidence of substantial nonpecuniary benefits from farming.
Author(s):
Key, Nigel , Roberts, Michael J.
Subject(s):
farmers , off-farm employment , farm labor , farm income , household income , econometric models , farm surveys , farmers' attitudes , farming systems
Description:
Includes references
Source:
American journal of agricultural economics 2009 Feb., v. 91, no. 1
Language:
English
Year:
2009
Publisher:
Blackwell Publishing Inc
Collection:
Journal Articles, USDA Authors, Peer-Reviewed
File:
Download [PDF]   
Rights:
Works produced by employees of the U.S. Government as part of their official duties are not copyrighted within the U.S. The content of this document is not copyrighted.