scholarly journals Off-farm role in stabilizing disposable farm income: A Lithuanian case study

2020 ◽  
Vol 66 (No. 7) ◽  
pp. 325-334
Author(s):  
Vida Dabkienė
Keyword(s):  
Reference Level ◽  
Farm Income ◽  
Family Farms ◽  
Income Volatility ◽  
Income Source ◽  
Policy Makers ◽  
Family Farmers ◽  
Farm Accountancy Data Network ◽  
Part Time ◽  
On Farm

The paper aims to investigate family farm income volatility by decomposing disposable farm income (DFI) into the on-farm income, income from production support and off-farm income (OFI) over time. The research is focused on the OFI, assessing its role in achieving DFI above reference level based on the average net earnings. Three main indicators consistent with Farm Accountancy Data Network (FADN) were indicated. The research results revealed the significance of OFI. In 2017, 76% of the family farms were engaged in off-farm activities indicating, on one hand that such approaches as part-time farming or lifestyle farming are becoming more attractive to Lithuanian family farmers. On the other hand, research disclosed that farms mostly engaged in off-farm activities yield the lowest on-farm income levels. Moreover, the OFI tends to produce a stabilizing effect on quite a number of farmers as the majority of family farms cannot rely upon the on-farm income as their only income source. Thus, the agricultural and rural development policy makers, aimed at supporting viable farm income and strengthening farm resilience, have to answer the part-time farmers’ needs.

scholarly journals Structural Changes in Israeli Family Farms: Long-Run Trends in the Farm Size Distribution and the Role of Part-Time Farming

Agriculture ◽  
2021 ◽  
Vol 11 (6) ◽  
pp. 518
Author(s):  
Ayal Kimhi ◽  
Nitzan Tzur-Ilan
Keyword(s):  
Size Distribution ◽  
Structural Changes ◽  
Farm Size ◽  
Farm Income ◽  
Higher Moments ◽  
Full Time ◽  
Family Farms ◽  
Income Sources ◽  
Part Time ◽  
The Mean

Israeli agriculture has experienced rapid structural changes in recent decades, including the massive exit of farmers, a resulting increase in average farm size, a higher farm specialization and a higher reliance on non-farm income sources. The higher farm heterogeneity makes it necessary to examine changes in the entire farm size distribution rather than the common practice of analyzing changes in the average farm size alone. This article proposes a nonparametric analysis in which the change in the distribution of farm sizes between two periods is decomposed into several components, and the contributions of subgroups of farms to this change are analyzed. Using data on Israeli family farms, we analyze the changes in the farm size distribution in two separate time periods that are characterized by very different economic environments, focusing on the different contributions of full-time farms and part-time farms to the overall distributional changes. We found that between 1971 and 1981, a period characterized by stability and prosperity, the farm size distribution has shifted to the right with relatively minor changes in higher moments of the distribution. On the other hand, between 1981 and 1995, a largely unfavorable period to Israeli farmers, the change in the distribution was much more complex. While the overall change in the size distribution of farms was smaller in magnitude than in the earlier period, higher moments of the distribution were not less important than the increase in the mean and led to higher dispersion of farm sizes. Between 1971 and 1981, the contributions of full- and part-time farms to the change in the size distribution were quite similar. Between 1981 and 1995, however, full-time farms contributed mostly to the growth in the average farm size, while the average farm size among part-time farms actually decreased, and their contribution to the higher dispersion of farm sizes was quantitatively larger. This highlights the need to analyze the changes in the entire farm size distribution rather than focusing on the mean alone, and to allow for differences between types of farms.

scholarly journals Decomposition of Income Distribution Among Farm Families

1987 ◽  
Vol 16 (2) ◽  
pp. 165-173 ◽  
Author(s):  
Jill L. Findeis ◽  
Venkateshwar K. Reddy
Keyword(s):  
Income Inequality ◽  
Farm Households ◽  
Farm Income ◽  
Annual Data ◽  
Full Time ◽  
Farm Families ◽  
Income Source ◽  
Regional Income Inequality ◽  
On Farm ◽  
Distribution Of Income

The greater reliance of U.S. farm families on off-farm income has implications for the structure of agriculture and the distribution of income within agriculture. Using annual data on farm households from the Current Population Survey, the degree of income inequality for the U.S. and by region is assessed for 1984. The distribution of income among farm families is decomposed by income source. Off-farm income is shown to contribute to higher average incomes and reduce income inequality at the margin, but only in regions where full-time farming predominates. In the Northeast and South, increases in off-farm income increase regional income inequality.

scholarly journals Approaches to estimation the farm-level economic viability and sustainability in agriculture: A literature review

2019 ◽  
Vol 65 (No. 6) ◽  
pp. 289-297 ◽  
Author(s):  
Jindřich Spicka ◽  
Tomas Hlavsa ◽  
Katerina Soukupova ◽  
Marie Stolbova
Keyword(s):  
Value Added ◽  
Economic Viability ◽  
Farm Income ◽  
Economic Sustainability ◽  
Family Farms ◽  
Return On Assets ◽  
Farm Accountancy Data Network ◽  
The Common ◽  
High Share ◽  
Legal Entities

Estimation of farm economic sustainability and viability became more topical when redesigning the Common Agricultural Policy which should stabilise farm income and make agribusiness more viable and sustainable (typically in Czech areas facing natural constraints). The key question is how to calculate the income of farms or farm households not only to survive but also to grow sustainably. The article summarises and compares knowledge from 51 studies to provide a comprehensive discussion on different ways how to measure economic viability and sustainability to set income support for farms in the areas with natural constraints optimally. The authors found family farms and off-farm income as important limitations of FADN database (Farm Accountancy Data Network) for evaluation of the economic sustainability of farm household. Moreover, some financial ratios (Return on Assets – ROA and assets turnover) are not suitable viability indicators for farms with a high share of hired land (typically large legal entities). Joining family farms and legal entities, the authors recommend using modified Farm Net Value Added (MFNVA) allowing for opportunity costs of own land and non-land assets. The average wage in the economy or region is a better proxy for opportunity labour costs of unpaid work rather than average agricultural wage.<br />

Discussion: Exchange Rates, Energy Policy and Outcomes in Agricultural Markets

2009 ◽  
Vol 41 (2) ◽  
pp. 529-530
Author(s):  
C. Parr Rosson
Keyword(s):  
Exchange Rates ◽  
Commodity Prices ◽  
Farm Income ◽  
Policy Makers ◽  
World Agriculture ◽  
On Farm ◽  
The Impact ◽  
Input Prices ◽  
Macroeconomic Environment ◽  
High Output

These three invited papers examine the role that exchange rates may have in influencing commodity prices, input prices and farm income. The papers arguably represent one of the most important recent attempts to quantify and explain these new linkages. As U.S. and world agriculture moves from a period of high output prices to a period of lower prices, understanding the impact of macroeconomic variables on farm input costs and farm income will become more important. Further, it will be equally important for policy makers to undertake appropriate market interventions in order to have maximum effectiveness should this period of cost-price-squeeze continue to intensify. Each of the papers has something significant to contribute to the understanding and debate of these new linkages between agriculture, the macroeconomic environment, and the energy sector.

scholarly journals PEKERJAAN LUAR USAHATANI (KASUS RUMAH TANGGA PETANI GUREM DI JAWA)

Agro Ekonomi ◽  
2016 ◽  
Vol 8 (2) ◽  
pp. 65
Author(s):  
Ken Suratiyah
Keyword(s):  
Household Income ◽  
The Other ◽  
Farm Income ◽  
Small Farmers ◽  
Poverty Level ◽  
Welfare Level ◽  
Income Sources ◽  
Level Increase ◽  
Part Time ◽  
On Farm

Small farmer's household never deppend on on-farm income, they must to get other income sources by allocating their family labour as must as possible.Although they are small farmers, they still regard their job is being farmer and the other off-farm activities just as part time jobs. Family labour allocation on off-farm activities is about four times then on-farm, the off-farm's share to household income are 60,31%.By off-farm activities household farmer welfare level increase from poverty level to become wealthy level or not be poor level. The fact is show that off-farm activities to become more important for small farmer's household.

scholarly journals THE LIKELIHOOD OF FARMS BANKRUPTCY: THE CASE OF LITHUANIAN FAMILY FARMS

2018 ◽  
Vol 40 (2) ◽  
pp. 198-205
Author(s):  
Andrej Jedik ◽  
Aldona Stalgienė
Keyword(s):  
Panel Data ◽  
Dairy Farms ◽  
Financial Indicators ◽  
High Likelihood ◽  
Family Farms ◽  
Agriculture Policy ◽  
Scientific Problem ◽  
Farm Accountancy Data Network ◽  
On Farm ◽  
Economic Size

In developing the measures of agriculture policy and purposeful usage of EU funds, also for financial organisations, farmers, advisors and scientists it is important to predict farm bankruptcy. This makes it possible to formulate the scientific problem: what is the likelihood of bankruptcy of different kinds of family farms? The aim of the investigation is to present the likelihood of the Lithuanian family farms bankruptcy based on the economic size and type of farming by analysing financial indicators of farms. Farm-level panel data for the year 2014–2016 from Farm Accountancy Data Network (FADN) was used. The estimated distribution of farm groups based on farm economic size demonstrated that about 40–60% of small farms were in the low likelihood of bankruptcy area. The share of cereals, oilseeds and protein crop farms in the high likelihood of bankruptcy area fluctuated from 13% till 30% during the year 2014–2016. The farm distribution by economic size and type of farming showed that more than 40% of small dairy farms had the high likelihood of bankruptcy in the year 2015–2016, as well as 30% of medium and large cereals, oilseeds and protein crops farms in 2016.

scholarly journals The Effects of Industrialization on Farm Income Distribution and Farm Numbers in New England

1981 ◽  
Vol 10 (2) ◽  
pp. 45-52
Author(s):  
A. Somwaru ◽  
T. C. Lee ◽  
S. K. Seaver
Keyword(s):  
Income Distribution ◽  
New England ◽  
Census Data ◽  
Farm Income ◽  
Middle Income ◽  
Economic Changes ◽  
The Past ◽  
Complementary Effect ◽  
Part Time ◽  
On Farm

Affected by industrialization, agriculture in New England adapts to economic changes. Farms have become either large commercial units or small part time farms. Distributions of farm income have changed from an inverted-J distribution to a U-shaped distribution in the past three decades. Farm income grows slower and shows a larger dispersion in urban counties than in rural counties. Analyses of census data support the hypotheses (1) that farm income is lognormally distributed and (2) that industrialization has a complementary effect on agriculture while growth of urbanization essentially reduces farm numbers mostly in middle income classes.

Rural Industrialization in Korea: Policy Program, Performance and Rural Entrepreneurship

2013 ◽  
pp. 49-73
Author(s):  
Suh Chong-Hyuk ◽  
Kim Hyong-Mo
Keyword(s):  
Rural Development ◽  
Farm Income ◽  
Industrial Park ◽  
Income Source ◽  
Rural Industrialization ◽  
Rural Entrepreneurship ◽  
Industrial Parks ◽  
Policy Program ◽  
Industrialization Policy ◽  
Stagnation Period

From the early seventies the Korean Government has adopted a rural industrialization policy as an important measure for promoting rural development. It has been perceived that through this measure the over-concentration of economic activity would be controlled and dispersed. Development of rural industrialization has passed through three different phases: i) the period of promoting rural cottage-type industries (1960-80); ii) the period of rural industrial park establishment; and iii) a stagnation period after the early 1990s. Throughout the overall period government policy changed from an individual project-oriented approach to a diversified and comprehensive policy program. The policy programs, such as the development of rural industrial parks, off-farm income source development and vocational training programs for farm youths, have helped in promoting rural industrialization. On the other hand, policy programs promoting rural out-migration and unbalanced regional development policy have impacted negatively on rural industrialization. Presently one of the serious policy issues facing rural industries is how to secure a young labor force and how to promote rural entrepreneurship. In addition, rural development efforts by local government and authorities are necessary in order to increase investment from urban-based entrepreneur firms. Keywords:Rural industrialization, farm household, off-farm income, rural development, rural industrial park, rural

Technical Efficiency in Seed Potato Production Systems in Uganda

2018 ◽  
Vol 10 (3(J)) ◽  
pp. 122-140
Author(s):  
Ambrose Rwaheru Aheisibwe ◽  
Razack B. Lokina ◽  
Aloyce S. Hepelwa
Keyword(s):  
Technical Efficiency ◽  
Seed Potato ◽  
Arable Land ◽  
Stochastic Frontier ◽  
Potato Production ◽  
Maximum Likelihood Estimates ◽  
Farm Income ◽  
Seed Potato Production ◽  
Extension Services ◽  
Income Source

This study established the level of technical efficiency and its determinants among the informal and formal seed potato producers in the southwestern highlands agro - ecological zone of Uganda. A multi- stage sampling procedure was employed to select 636 households (499 informal seed producers and 137 formal seed producers) from which data was collected for two seasons using a semi - structured questionnaire. Data was analyzed using the stochastic frontier approach with a one - step approach. Maximum likelihood estimates for the efficiency parameters showed that both informal and formal seed potato producers were not fully efficient. The mean technical efficiency for informal and formal seed potato producers was 8 1 .4 and 80.4 percent respectively. In terms of yield loss, informal and formal seed potato producers respectively lost an average of 981 and 1,208 kg/acre of seed potato tubers due to inefficiency factors . Specifically, off- farm income source, scale of production, seasonal variation, access to extension services and seed producer being male positively influenced informal seed producers’ technical efficiency while producers’ level of education and seed potato variety diversity negatively influenced their efficiency. For formal seed producers, technical efficiency was influenced positively by producers’ education and negatively by household size. The study suggests that there is an opportunity to improve technical efficiency of informal and formal seed producers by 19 and 20 percent respectively. Therefore, this calls for increased investment in developing and promoting high yielding varieties, provision of extension services, input intensification and addressing gender issues in seed potato production in the context of limited arable land .

Closing sustainability gaps on family farms: Combining on-farm co-innovation and model-based explorations

2021 ◽  
Vol 188 ◽  
pp. 103017
Author(s):  
P. Colnago ◽  
W.A.H. Rossing ◽  
S. Dogliotti
Keyword(s):  
Family Farms ◽  
Model Based ◽  
On Farm
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