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Accounting for the Importance of Nonfarm Income on Farm Family Income Inequality in New York

Published online by Cambridge University Press:  10 May 2017

Richard N. Boisvert  and
Christine Ranney
Richard N. Boisvert
Affiliation:
Department of Agricultural Economics, Cornell University
Christine Ranney
Affiliation:
Department of Agricultural Economics, Cornell University
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Abstract

As the proportion of farm family income due to nonfarm sources continues to grow nationally, it is important to understand how farm families in various regions or states are affected. This paper develops a better understanding of the contribution of income from nonfarm sources to the level and distribution of income among farm families in New York. In analyzing income distribution, the Gini ratio is decomposed to determine the effects of marginal changes in income by source to overall inequality. The results are compared with the simulated changes in income inequality due to changes in income by source as measured by an “adjusted” Gini ratio which accounts specifically for negative farm incomes. Differences in the policy implications from both procedures are compared. The relationships among sources of income and policy implications can be brought into sharper focus by examining both measures.

Type
Articles
Information
Northeastern Journal of Agricultural and Resource Economics , Volume 19 , Issue 1 , April 1990 , pp. 1 - 11
Copyright
Copyright © 1990 Northeastern Agricultural and Resource Economics Association 

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