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Toward an Aggregative Measure of Saving and Capital Finance for U.S. Farm Operator Families
Author(s) -
Penson John B.
Publication year - 1977
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1239608
Subject(s) - nonfarm payrolls , economics , capital (architecture) , measure (data warehouse) , equity (law) , production (economics) , finance , agriculture , business , microeconomics , law , history , ecology , archaeology , database , biology , computer science , political science
The present economic accounting system for the farm production sector fails to measure the personal saving of sector participants and its allocation between financing farm and nonfarm investments. This paper discusses the conceptualization, estimation, and usefulness of two economic accounts covering 1970–75 that provide this information for farm operator families, the largest group of sector participants. These accounts also identify the portion of annual farm capital accumulation financed by internal versus external funds. Analytical ratios illustrating the substantial amounts of equity capital withdrawn to finance nonfarm investments in recent years are presented.