Understanding U.S. Farm Exits
by
Robert Hoppe and Penni Korb
Economic Research Report No. (ERR-21 ) 42 pp, June 2006
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.
Keywords: 1997 Census of Agriculture Longitudinal File, farm exit, farm exit probability, farm entry, farm structure, farm operator characteristics, farm operator life cycle
In this publication...
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Report summary, Pdf file 98 kb | HTML
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Abstract, Acknowledgments, Contents, and Summary, Pdf file 151 kb
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Introduction, Pdf file 69 kb
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Background: Farm Exit Literature, Pdf file 57 kb
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Source of Data, Pdf file 118 kb
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The Model, Pdf file 24 kb
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Results From the Base Model, Pdf file 113 kb
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Additional Independent Variables, Pdf file 112 kb
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Findings and Future Directions, Pdf file 25 kb
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References, Pdf file 28 kb
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Appendix I: 1997 Census of Agriculture Longitudinal File, Pdf file 41 kb
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Appendix II: The Logistic Regression Model, Pdf file 46 kb
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Appendix III: Farms With Sales of Less than $2,500 in the 1978 Census of Agriculture, Pdf file 71 kb
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Entire report, Pdf file 532 kb
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