Understanding Measurements Of Farm Income

This title was first published in 2000: The central aim of the Common Agricultural Policy is to support the incomes of farmers, yet reliable information on the overall incomes of farmers and their households is scarce. In general, farmers in the EU are not a low-income or poor sector of society and much of the present CAP income support goes to those that are relatively well-off. This book, the 3rd edition to address these issues, has been updated and expanded to include: updated coverage of statistics and references; the major changes in methodology of income measurement flowing from the 1995 revision of the European System of Accounts; a critical examination of wealth and balance sheets for the agricultural industry as currently calculated; incorporation of material from Japan and countries in Central and Eastern Europe that are candidates for EU membership.

The Common Agricultural Policy (CAP) has been supporting the incomes of the European Union's agricultural community for half a century. Despite this, there is still no official system in place to track the economic wellbeing of farmers and their families. This book examines the evidence on the overall wealth of farming households, and concludes that in nearly all member states, they are not generally a poor sector of society, with disposable incomes that are similar to, or exceed, the national average.

Livelihoods are changing rapidly in rural areas. Measuring and categorizing peoples’ labor activities in relation to the agricultural sector is important for understanding income earning opportunities and designing effective policy. Conventional data collection methods ask about individuals’ main work activities over the past year. Descriptions are recorded in the field, postcoded, and eventually categorized. This approach is costly to collect, fatiguing for respondents, and may create distortions. We show that a more direct approach, asking respondents to categorize their major work activities themselves, provides similar resulting data despite some caveats and lessons for best enumeration practices. We compare these main activities to a series of yes/no questions about participation in a set of specific work tasks. We find a 12% incidence of “missing” work, whereby individuals who reported participation in at least one but did not have any recorded major activities. Looking by sector of work, women and youth are disproportionately more likely to have agricultural contributions “missed,” while we find no corresponding bias in undercounting of non-agricultural work. Finally, we test the effect of randomly positioning the task-based questions before the listing of major activities but do not find significant effects on the number or type of activities reported.

Report, statistical tables, agricultural income and other income, farmers, Canada - standard of living, investment return, public expenditure in the agricultural sector, agricultural policy implications. Bibliography pp. 79 and 80. Graphs, references.

America's farms and farmers are integral to the U.S. economy and, more broadly, to the nation's social and cultural fabric. A healthy agricultural sector helps ensure a safe and reliable food supply, improves energy security, and contributes to employment and economic development, traditionally in small towns and rural areas where farming serves as a nexus for related sectors from farm machinery manufacturing to food processing. The agricultural sector also plays a role in the nation's overall economic growth by providing crucial raw inputs for the production of a wide range of goods and services, including many that generate substantial export value. If the agricultural sector is to be accurately understood and the policies that affect its functioning are to remain well informed, the statistical system's data collection programs must be periodically revisited to ensure they are keeping up with current realities. This report reviews current information and makes recommendations to the U.S. Department of Agriculture's (USDA's) National Agricultural Statistics Service (NASS) and Economic Research Service (ERS) to help identify effective methods for collecting data and reporting information about American agriculture, given increased complexity and other changes in farm business structure in recent decades.