Variables
Income
Wealth
t-statistic
t-statistic
Constant
7.9451***
4.56
3.0216***
4.83
Operator’s age: 35-49
−1.2773
−1.12
−0.7748**
−1.98
Operator’s age: older than 50
−1.6947
−1.62
−0.9670***
−2.86
Operator is white
−0.8864**
−2.42
−0.4903***
−2.67
Operator has a high school or some college education
−0.6060
−1.21
−0.3796
−1.35
Operator has college education or beyond
−0.9168*
−1.79
−0.4997*
−1.69
Household participates in farm programs only
−0.5085
−0.98
0.5438*
1.88
Household participates in off-farm work only
−1.5253***
−3.90
0.6104***
2.74
Household participates in both farm programs and off-farm work
−1.6431***
−3.75
0.1030
0.49
Income inequality, G*
--
--
0.7355***
4.71
Farm is organized as a sole proprietorship
−2.1170***
−2.74
−0.6854**
−2.49
Farm is partly-owned
−1.3689**
−2.26
−1.0139***
−3.28
Farm is fully-owned
−1.3475*
−1.94
−1.1086***
−3.43
Entropy index of farm commodity diversification
−0.9193
−0.90
−2.0660***
−3.73
Farm has crop insurance coverage
0.1783
0.34
−0.0125
−0.06
Economic size of farm: at least $250,000 in annual farm sales
2.1651***
3.57
−0.1759
−0.53
Capital expenditures ($1000) per operated acres
0.0941
1.11
0.0160
0.55
Capital expenditures per operated acres, squared
−0.0011***
−2.74
−0.0001
−0.27
Farm is located in the Midwestern region
−0.2592**
−2.50
0.1083**
2.11
Farm is located in the South region
−0.2227***
−3.09
−0.0160
−0.43
County unemployment rate (%)
−0.0705
−1.45
−0.0676**
−2.53
County unemployment rate, squared
0.0046*
1.68
0.0030*
1.96
Year: 2004
0.0373
0.37
0.1164**
2.09
Year: 2005
−0.0651
−0.69
0.1162**
2.09
Year: 2006
0.0527
0.59
0.0210
0.38
Year: 2007
0.2385**
2.12
0.0536
1.04
Year: 2008 (financial crisis)
0.2531**
2.27
0.0094
0.18
Year: 2009
0.1301
1.12
0.1103*
1.66
Year: 2010
−0.0602
−0.57
0.1507**
2.54
Year: 2011
0.0398
0.41
0.0794
1.35
Year: 2012
0.2217*
1.67
0.0557
0.79
R-squared
0.3551
0.4261
F-statistic: model
8.53***
10.00***