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The Dynamics of Farm Incomes: Panel data analysis using the Farm Accounts Survey
Author(s) -
Phimister Euan,
Roberts Deborah,
Gilbert Alana
Publication year - 2004
Publication title -
journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.157
H-Index - 61
eISSN - 1477-9552
pISSN - 0021-857X
DOI - 10.1111/j.1477-9552.2004.tb00093.x
Subject(s) - farm income , net national income , agriculture , economics , net income , recession , panel data , agricultural economics , household income , adjusted gross income , total personal income , cash , survey data collection , demographic economics , income in kind , income distribution , net farm income , labour economics , gross income , geography , finance , public economics , inequality , econometrics , mathematical analysis , statistics , mathematics , archaeology , tax reform , keynesian economics , state income tax
This paper uses longitudinal information from the Scottish Farm Accounts Survey to explore the dynamics of Scottish farm incomes between 1988/89 and 1999/2000. Both the Net Farm Income and Cash Income of farms are considered. The results show high levels of income variability and income mobility within Scottish agriculture. Although exit rates from the lowest income groups remain relatively high even when spells of low income have lasted a number of years, there is evidence of farms with persistent low farm income and farms experiencing repeated spells of low‐income. Smaller farm size and having a farmer aged over 65 increase both the probability that a farm will fall into the lowest income group and the length of time spent in that income group. Further the results suggest that the impact of the post‐1997 agricultural recession on income mobility depended on the income status of the farm when the recession began.