Off-farm income, technology adoption, and farm economic performance
By: Jorge Fernandez-Cornejo ; with contributions from Ashok Mishra ... [et al.].
Contributors: Mishra, Ashok K. 1967-; United States. Dept. of Agriculture. Economic Research Service.
Series: Economic research report -- no. 36.; Economic research report (United States. Dept. of Agriculture. Economic Research Service) -- no. 36.
Publisher: USDA, Economic Research Service
Published: 2007
Place of publication: [Washington, DC]
Language: eng
Number of pages: 46
Subjects: Farm income -- United States.; Farmers -- Time management -- United States.; Part-time farming -- Economic aspects -- United States.; Agricultural innovations -- Economic aspects -- United States.; Farms, Size of -- Economic aspects -- United States.
Description: The economic well-being of most U.S. farm households depends on income from both onfarm and off-farm activities. Consequently, for many farm households, economic decisions (including technology adoption and other production decisions) are likely to be shaped by the allocation of managerial time among such activities. While time allocation decisions are usually not measured directly, we observe the outcomes of such decisions, such as onfarm and off-farm income. This report finds that a farm operator's off-farm employment and off-farm income vary inversely with the size of the farm. Operators of smaller farm operations improve their economic performance by compensating for the scale disadvantages of their farm business with more off-farm involvement. Off-farm work reduces farm-level technical efficiency, but increases household-level technical efficiency. And adoption of agricultural innovations that save managerial time is associated with higher off-farm income.
Notes: Includes bibliographical references (p. 25-35).

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