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Why Did the Number of Young Farm Entrants Decline?
Author(s) -
Gale H. Fred
Publication year - 1993
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 - 10.2307/1242962
Subject(s) - nonfarm payrolls , agriculture , economics , commodity , barriers to entry , demographic economics , agricultural economics , resizing , business , geography , international economics , market economy , monopoly , archaeology , european union
The influence of demographic and economic factors on the number of young farm entrants is investigated. After controlling for the demographic effect, it is found that higher commodity prices, lower real interest rates, and lower land values are associated with greater entry. Regional effects suggest lower entry in states with better nonfarm opportunities. Demographic factors suggest that the shrinking pool of potential entrants will lead to further decline in farm entry. The decline in farm entry has important implications for the future structure of farming in the United States.