oversight

Farming and Farm Programs: Impact on the Rural Economy and on Farmers

Published by the Government Accountability Office on 1990-04-24.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

                      United   States   General
                                          -       Accounting   Offke
                      Briefing Report to Congressional
GA6                   Requesters



April   1990
                      FARMING AND
                      FARM PROGRAMS
                      ImpaCt on the Rural
                      Economy and on
                      Farmers




  GAO/RCED-90-108BR
      United States

GAO   General Accounting OffIce
      Washington, D.C. 20548

      Resources, Community,     and
      Economic Development      Division

      B-238743

      April24,1990

      Congressional           Requesters
      In response to your June 13, 1989, request,                     this briefing
      report     presents       information     on (1) the relative         importance
      of farm sector employment              (full-time      and part-time)      and
      nonfarm employment             to the rural      economy and (2) the
      distribution        of farm program payments.               We analyzed    the
      payment distribution             by production       specialty,    sales class,
      region of the country,              and the level of income earned by
      farm operators         on    and off the farm.         We also compared the
      distribution        before and after           passage of the Food Security
      Act of 1985 (commonly known as the 1985 farm bill).
      In summary, the number of farming-dependent                counties   is
      decreasing,      and nonagricultural       employment    in rural    counties
      is increasingly       important     to those county economies.          Nine
      out of 10 rural       workers are employed by nonfarm industries.
      Over half of the United States farm families                have one or
      more family     members working       at nonfarm jobs.       Although    about
      one-half    of average total       cash income is earned from
      employment     off the farm, that percentage          has remained
      relatively     stable   since at least      1979.

      For the most part,     the distribution       of farm program payments
      did not change substantially         after   passage of the 1985 farm
      bill.    During the 1985 through         1988 time period,    cash grain
      farms received    over half of all farm payments,          the largest
      percentage    of payments went to farms with sales of $100,000
      to $249,999 and to farms in the Corn Belt Region.               During
      the same period,    the percentage        of payments going to farms
      with a net cash farm income of $40,000 or more decreased,
      and it increased    for- those farms with a net cash farm income
      of $39,999 to -$9,999.
      Our work was performed      between August and December 1989.               To
      assess the importance     of farm and nonfarm employment             to the
      rural  economy, we relied      on existing      publications--most       by
      the U.S. Department    of Agriculture's         (USDA) Economic
      Research Service    (ERS)--see    bibliography.          We obtained   the
B-238743

payment distribution        data from ERS's annual Farm Costs and
Returns Survey.      We analyzed     payment data for calendar   years
1985 through    1988 --with     1985 being  the period before the
1985 farm bill.      We did not verify      the accuracy of USDA's
data and other sources of data.
We are sending copies of this briefing               report   to the
Director,    Office    of Management and Budget;           the Secretary  of
Agriculture;      the Administrator,        Economic Research Service;
and other interested       parties.       If we can be of further
assistance,     please contact       me at (202) 275-5138.         Major
contributors      to this briefing      report    are listed    in appendix
II.




John W. Harman
Director,      Food and
   Agriculture     Issues




2
B-238743


List   of Requesters
The Honorable  E (Kika) de la Garza, Chairman
The Honorable  Timothy J. Penny, Member
The Honorable  Charles W. Stenholm,        Member
The Honorable  Robin Tallon,      Member
The Honorable  Tim Johnson, Member
The Honorable  Bill   Sarpalius,     Member
The Honorable  Charles Rose, Member
The Honorable  Bill   Schuette,     Member
The Honorable  James Jontz,      Member
The Honorable  Claude Harris,       Member
The Honorable  Martin    Lancaster,    Member
The Honorable  Richard H. Stallings,        Member
Committee on Agriculture
House of Representatives




3
                                 CONTENTS

                                                                  Page
LETTER                                                              1

SECTION
       1       IMPORTANCE OF FARM SECTOR ACTIVITIES      TO THE
                 RURAL ECONOMY                                      8
                   Number of Farming-Dependent    Counties
                      is Decreasing                                 8
                   Farmers are Increasingly    Working Off
                     Their Farms                                   11


               DISTRIBUTION OP+FARM PROGRAMPAYMENTS--
                  1985 THROUGH 1988                                13
                    Payment Distribution      by
                      Production    Specialty                      13
                    Payment Distribution      by Sales Classes     16
                    Payment Distribution      by Geographic
                      Region                                       17
                    Payment Distribution      by Level  of Net
                      Cash Farm Income                             22
                    Payment Distribution      by Level  of
                      Income Earned Off the Farm                   24
                    Percentage   of Farms Receiving     Various
                      Levels of Payments                           26

APPENDIX
       I       FARM PROGRAMPAYMENT DATA TABLES                     29
  II           MAJOR CONTRIBUTORS TO THIS BRIEFING REPORT          41

BIBLIOGRAPHY                                                       42

TABLE
  1.1          Days Worked Off    The Farm                         11

  1.2          Off-farm     Income as a Percentage    of Farm
                  Operators'     Total Cash Income                 12

  I.1          Number of Participating       Farms and Average
                 Payment by Production       Specialty, 1985       29
  I.2          Number of Participating       Farms and Average
                 Payment by Production       Specialty, 1986       29


                                 4
I.3     Number of Participating      Farms and Average
          Payment by Production      Specialty, 1987     30

I.4     Number of Participating      Farms and Average
          Payment by Production      Specialty, 1988     30
I.5     Number of Participating   Farms and Average
          Payment by Sales Class,    1985                31
I.6     Number of Participating   Farms and Average
          Payment by Sales Class,    1986                31

I.7     Number of Participating   Farms and Average
          Payment by Sales Class,    1987                32

1.8     Number of Participating   Farms and Average
          Payment by Sales Class,    1988                32

I.9     Number of Participating      Farms and Average
          Payment by Region,      1985   .;              33

I. 10   Number of Participating      Farms and Average
          Payment by Region,      1986                   33

I.11    Number of Participating      Farms and Average
          Payment by Region,      1987                   34

I. 12   Number of Participating      Farms and Average
          Payment by Region,      1988                   34

I.13    Number of Participating Farms and Average
          Payment by Level of Net Cash Farm
            Income, 1985                                 35

I.14    Number of Participating Farms and Average
          Payment by Level of Net Cash Farm
            Income, 1986                                 35

I.15    Number of Participating  Farms and Average
          Payment by Level of Net Cash Farm
            Income, 1987                                 36

I.16    Number of Participating Farms and Average
          Payment by Level of Net Cash Farm
             Income,   1988                              36

I.17    Number of Participating  Farms and Average
          Payment by Level of Off-farm  Income, 1985     37

I.18    Number of Participating  Farms and Average
          Payment by Level of Off-farm  Income, 1986     37
 I.19    Number of Participating  Farms and Average
           Payment by Level of Off-farm  Income, 1987                         38

 1.20    Number of Participating  Farms and Average
           Payment by Level of Off-farm  Income, 1988                         38

 I.21    Number of Participating Farms and Average
           Payment by Level of Government Payments,
                 1985                                                         39
 I.22    Number of Participating Farms and Average
           Payment by Level of Government Payments,
                 1986                                                         39
 I.23    Number of Participating Farms and Average
           Payment by Level of Government Payments,
                 1987                                                         40

  I.24   Number of Participating Farms and AVerage
           Payment by Level of Government Payments,
             1988                                                             40

FIGURE
  1.1    Farming-Dependent             Counties,     1950                      9
  1.2    Farming-Dependent             Counties,     1981,        1982,
           1984,        1985,   1986    (Average)                              9
  1.3    Rural     Employment      by Industry                                10
  2.1    Percentage        of Farms by Production             Specialty       14

  2.2    Percentage   of Payments            Received        by Farms by
           Production   Specialty                                             15

  2.3    Percentage         of Farms by Sales         Classes                 16

  2.4    Percentage  of Payments             Received        by Farms by
           Sales Classes                                                      17

  2.5    Percentage         of Farms by Region                                18

  2.6    Percentage  of Payments             Received        by    Farms
           by Region                                                          20

  2.7    Percentage         of Farms by Net         Cash Farm Income
           Level                                                              23

  2.8    Percentage of Payments Received                     by    Farms by
           Level of Net Cash Farm Income                                      24



                                   6
  2.9    Percentage of Farms by Level        of Income     Earned
           Off the Farm                                             25

  2.10   Percentage of Payments Received        by     Farms by
           Level of Off-farm  Income                                26

 2.11    Percentage    of Farms by Payment     Level                27

 2.12    Percentage    of Total   Payments   Represented     by
           Payment    Levels                                        28

                        ABBREVIATIONS
USDA     U.S. Department  of Agriculture
ERS      Economic Research Service




                             7
                                         SECTION 1

                             IMPORTANCE OF FARM SECTOR
                         ACTIVITIES      TO THE RURAL ECONOMY

        How important   are farm        sector     activities      (full-time      and part-
time)    versus  nonfarm-related         activities         to the rural      economy?
NUMBER OF FARMING-DEPENDENT
COUNTIES IS DECREASING
       Over the years,        a trend has existed     toward more
nonagricultural        employment    and less agricultural       employment   in
rural    c0unties.l       Decades ago, the rural      economy was dominated       by
farming.       Currently,     most rural   areas depend on nonfarm industries-
9 out of 10 rural         workers are employed in nonfarm industries.
Since the 195Os, the number of counties             de-dent       on farming    as an
economic base has continued           to decline.     As defined     by the ERS,
farming-dependent         counties   are those counties      where farming
contributes       at least    20 percent   of the county's     labor and
proprietor      income.     Figures   1.1 and 1.2 illustrate       this declining
trend.      In 1950, about 2,000 out of 3,069 counties             were farming
dependent,      and by the mid-1980s       this number had declined        to 516.




'We considered        rural    counties       to be nonmetropolitan         counties      as
defined    by the Office        of Management and Budget.               Nonmetropolitan
counties     are counties       that are not in Metropolitan              Statistical
Areas.     Metropolitan        Statistical        Areas include      core counties
containing      a city of 50,000 or more people,                 or contain     several
smaller    cities     totaling      50,000      or more people and a total            area
population      of at least       100,000.        Additional     contiguous     counties     are
included     in the Metropolitan            Statistical      Area if they are
economically      and socially          integrated      with the core county.


                                            8
      F&wre     1.1:        Farming-Dependent            Counties,    1950




                       I
                                      -.             Y




   -Farming-dependent
Source:       USDA.
    Figure   1.2:          Farming-Dependent         Counties,       1981,1982,1984,1985,198~
    (Average1




                                                yy
   -Far ,ming-d ependent         counties
                                                                                        0,’
Source:    USDA.

                                                         9
       In the early    198Os, 514 counties      were farming-dependent        and
540 counties     were farming-important,      where farming contributed          10
to 19 percent     of the county's      labor and proprietor      income.     The
remaining    2,015 counties      are not farming-dependent       or farming-
important    counties,   because    farming  contributed     less than 10
percent   of the county's      labor and proprietor      income.
       Figure    1.3 shows that as of 1986, most rural         workers were
employed in industries       other than agriculture.        Over 60 percent    of
rural   workers were employed in the service         industry,     which was the
leading    source of rural    job growth.   Manufacturing       employed about
17 percent     of the rural    job force, and farming employed 9 percent.

Figure       1.3:   Rural   Employment   by   Industry        (1986)




                                                         5%
                                                         Construction
                                                         Manufacturing




                                                         Wholesale
                                                                and Retail



                                                         Government Services




Note:        Percentages    do not add to     100   percent       due to rounding.
Source   :      USDA.


                                              10
FARMERS ARE INCREASINGLY
WORKING OFF THEIR FARMS
       Most farm households         depend on other sources of off-farm
income in addition         to farming    income.     Farm operators     are spending
increasing       amounts of time at nonagricultural          jobs   off their   farms.
As table     1.1 illustrates,       the number of days that farm operators2
work at jobs off their          farms has increased      over the years.      For
example,     in 1929, approximately         6 percent   of farm operators     spent
200 or more days working off their             farms.    In 1987,      about 35
percent    of farm operators        spent this same number of days working
off their      farms.



Table     1.1:      Days Worked Off        The Farm
                                      Number of days worked off-farm
                                 None or                     .?s                      200       or
Year                             not reporting   1-99      106-199                    more
                                 -----------percent          of   farm operators-------
1929                                     69.7         18.8              5.2               6.3
1934                                     69.5         19.3              5.1               6.1
1939                                     71.3         13.2              6.2               9.3
1944                                     73.2          8.4              4.2           14.2
1949                                     61.1         15.5              5.8           17.5
1954                                     55.0         17.1              6.4           21.5
                                         55.1         15.0                            23.7
1959
1964                                     53.7
                                         45.7
                                                      14.2
                                                      14.3
                                                                        i:;           26.1
1969
1974
1978
                                         55.6
                                         46.7
                                                       8.6
                                                      11.2
                                                                        682
                                                                        8.0
                                                                                      31.9
                                                                                      28.9
                                                                                      34.1
1982                                     47.0         10.0              8.4           34.6
1987                                     46.6          9.6              8.5           35.3

Source:          Department   of Commerce.




2Farm operators    are defined  by the Census of Agriculture                     as the
individual   owners, the operators,   the senior partners,                     or persons
in charge.


                                              11
      Off-farm  income represents      approximately         one-half     of    farmers'
total  cash income.3      As table  1.2 shows, this          proportion        has
remained fairly    stable   over the last 11 years.
Table     1.2:  Off-farm       Income    as a Percentage   of Farm Operators'
Total     Cash Income
                                                               Off-farm    income as
                        Total cash              Off-farm        percentage     of
         Year              income                income         total   cash income
                         --(Dollars      in Billions)--
        1979                67.2                   33.8                    50.3
        1980                68.9                   34.7                    50.4
        1981                68.6                   35.8                    52.2
        1982                74.2                   36.4                    49.1
        1983                73.9                   37.0                    50.1
        1984                77.5                   38.9                    50.2
        1985                89.3                   42.6                    47.7
        1986                96.4                   44.6                    46.3
        1987               101.3                   46.8                    46.2
        1988               108.9                   51.7                    47.5
        198ga              107.0                   54.0                    50.5

al989     data    are estimated.
Source:         USDA.




3Total cash income includes               net cash farm income (cash revenues
from farming minus related              cash expenses),    government payments,            and
income earned from outside              the farming   operation.


                                           12
                                       SECTION 2

                                DISTRIBUTION     OF FARM
                      PROGRAMPAYMENTS--1985          THROUGH 1988

         This section       provides     information      on government    farm program
payments before and after              enactment     of the Food Security        Act of
1985.       Payments   include       any   payments    to  farmers  in  cash    or
certificates       for participating           in any state or federal        farm
program.       Generally,       these programs are federal          farm price and
income support programs that assist                  in making U.S. farm commodities
more competitive          in the world marketplace            while maintaining     farm
income.
        The section      gives information      for calendar    years 1985 through
1988,     with 1985 being the only year with payment data attributable
solely     to the previous       farm bill.     All data in this-     ection     relate
only to farms that receive            federal   and/or state far It program
payments.        It should be noted that 1986 is a transition              year--some
outlays      are attributable       to the 1985 farm bill     and others to the
previous      farm bill.       In our analysis,     we break down the
distribution       of farm payments by production          specialty,    farm size
(sales class),        region of the country,        level of income earned on the
farm, level of income earned off the farm, and the amount of farm
payments received.            (See app. I for data tables.)

PAYMENT DISTRIBUTION BY
PRODUCTION SPECIALTY

       Figures   2.1 and 2.2 show the percentage       of total    participating
farms represented      by each production   specialty'    and the percentage
of total     farm payments going to each production       specialty
respectively     for the years 1985 through     1988.    During this period,
cash grain farms represented       close to half of all participating
farms,    and they also received    over half of all farm payments.
Figure 2.2 also shows that cash grain        farms received      a slightly
lower percentage     of the total   payments in 1988 than in 1985 and
that beef, hog, and sheep farms received         a higher percentage.




lProduction    specialty   is determined by that            production     activity,
such as raising     beef, hogs, and sheep, that             represents     at least
one-half    of farm sales.


                                        13
Figure        2.1:     Percentage   of Farms by Production   Specialty


         55Puconl

         50

         45

         40

         s5

         so

         25

         20

         15

         10

          5

          0




Source:             USDA.




                                               14
Figure 2.2:           Percentaqe   of Payments   Received   by Farms by Production
Specialty


          55
          so-

          w

          50
          45

          40
          35

          so
          25
          20

          15
          10
              5

              0




Source:           USDA.




                                            15
PAYMENT DISTRIBUTION                BY
SALES CLASSES
      Figures    2.3 and 2.4, respectively,        show the percentage     of
farms represented       by various    sales classes    and the percentage     of
farm payments going to each class for the years              1985 through    1988.2
Throughout    the period,     the largest   percentage    of payments went to
the $100,000 to $249,000 sales class --averaging             about  37 percent     of
all payments.       This sales class averaged about        26 percent    of all
farms from 1985 through         1988.
Figure         2.3:   Percentage         of Farms by Sales    Classes


 44   Pwcsnt




                              -!?
 25


 20


 15




      5500,m or
      OVU

      Salaa Olaaaaa




Source:           USDA.




2Sales classes            are defined       as different     ranges   of dollar   sales   from
farm operations.


                                                 16
Figure 2.4:              Percentage        of Payments   Received   by Farms by Sales
Classes


          40   Paroant


          35


          30


          25


          20


          15


          10


           5


           0
                               m               ‘I




Source:        USDA.
PAYMENT DISTRIBUTION                  BY
GEOGRAPHIC REGION
       Figures    2.5 and 2.6 show the percentage        of farms and the
percentage     of farm payments,     respectively,   by geographic    region for
the years 1985 through       1988.    As the figures     show, the Corn Belt
represents     the largest   percentage     of both participating   farms and
farms receiving      payments during     the period.




                                                    17
Figure    2.5:       Percentage    of Farms By Regiona

            35   Pofcmt


            30


            25




             (continue)




aThe states       in each region        are defined      as follows:           Northeast--
Conn., Del.,        Mass., Md., Me., N.J.,          N.H., N.Y., Penn., R.I.,               Vt.;
Lake States--Mich.,           Minn.,    Wis.; Corn Belt--Iowa,            Ill.,     Ind.,   MO.,
Ohio; Northern         Plains--Kans.,       N. Dak., Neb., S. Dak.; Appalachia--
KY., N.C., Tenn., Va., W.Va.: Southeast--Ala.,                      Fla.,       Ga., S.C.;
Delta--Ark.,        La., Miss.;       Southern   Plains--Okla.,        Tex.; Mountain--
Ariz.,    Colo.,     Idaho, Mont., N. Mex., Nev., Utah, Wyo.; Pacific--
Calif.,      Oreg., Wash.




                                                18
Continuation    of Flgure 2.5


          35Puant


          30


          25


          20


          15


          10


           5


           0




Source:             USDA.




                                19
Figure           2.6:          Percentage   of Payments   Received   by Farms by Regiona


   35       Porcmt


   30


   25


   20


   15


   10


        5


        0




             El         1995

                        1996

                        1987

                        1989



    (continue)




aSee note               on p.     18.




                                                  20
Continuation     Figure 2.6



       35      Poreant




       25


       20


       15


       10


        5


        0
                                  th
               southnat                m   saman   PWna




  Source:                 USDA.




                                                    21
PAYMENT DISTRIBUTION BY LEVEL
OF NET CASH FARM INCOME
        Figures    2.7 and 2.8, respectively,       give the percentage      of
farms represented         and th percentage    of payments received        by level
of net cash farm income. f The percentage            of farms with a net cash
farm income of $40,000 or more decreased while the percentage                    of
farms with a net cash farm income of $39,999 to -$9,999 increased.
Similarly,      the percentage    of payments going to farms with a net
cash farm income of $40,000 or more decreased,               and it increased       for
those with a net cash farm income of $39,999 to -$9,999.                  As shown
by the figures,        between 1985 and 1988, the percentage         of farms with
net cash farm income of $100,000 or more fell              from 8 percent     to
about     6 percent,    and the share of total      payments going to these
farms fell      from about 24 percent      to about    18 percent.     In contrast,
the percentage        of farms with a net cash farm income of zero or less
averaged about        27 percent  from 1985 through      1988,   and the share of
payments going to this group increased            from about     20 percent    in
1985 to almost 23 percent         in 1988.




3Net cash farm income is gross cash farm income minus all operating
expenses,  including interest payments, but excluding principal
repayment.



                                      22
Fiqure           2.7:       Percentage   of Farms by Net Cash Farm Income Level


35   Poreant


30


25


20


15




     Lewl      ot Not M   Fmn   lncomm


     I-J          ‘955
                  1966

                  1957

     m            1958




Source:              USDA.




                                               23
Figure 2.8:  Percentage         of Payments     Received     by Farms by Level       of
Net Cash Farm Income




Source:     USDA.
PAYMENT DISTRIBUTION BY LEVEL
OF INCOME EARNED OFF THE FARM
       Off-farm      income includes        cash income received       from an off-farm
business:     off-farm      wages or salaries;       interest     and dividends;     and
other off-farm         sources such as nonfarm rental           property,     social
security,     and retirement         received   by farm operators        and other
household     members.         Figure 2.9 shows the percentage           of farms that
fall    into various       off-farm     income levels.      Figure 2.10 shows that
between 1985 and 1988, most payments went to farms with off-farm
income of less than $10,000.




                                         24
Figure    2.9:    percentage    of Farms by Level         Of Income   Earned   Off   the
Farm


                 70   Poroult


                 50


                 50


                 40


                 30


                 20


                 10




                                 s4omoto        SlODOWb
                                 sm-            WS,SW




Source:      USDA.




                                           25
Figure 2.10:    Percentage       of Payments     Received    by   Farms by Level     of
Off-farm  Income




Source:     USDA.
PERCENTAGE OF FARMS RECEIVING
VARIOUS LEVELS OF PAYMENTS
        During 1985 through          1988,  the percentage       of farms receiving
payments of $50,000          or more is relatively          small compared to the
majority     of participating         farms that are receiving          less than
$10,000.       However, payments of $50,000              or more represent       the
largest     percentage      of total     payments,    although     that   percentage
decreased      in 1988 from 1986 and 1987 levels.                Figure 2.11 shows the
percentage       of farms receiving        various    levels   of payments,        and
figure    2.12 shows the percentage             of total    payments represented       by
different     dollar    payment levels.




                                            26
     Figure          2.11:        Percentage   of Farms by Payment   Level



75     Puoant
70
55
so
55
w
45
40
35
30
25
2s
15




       s5omoa~                 ~~”
                                 .
       Lwol     dGovommult   Plymants


       Iloss




     Source:             USDA.




                                                     27
Figure    2.12:      Percentage   of Total    Payments   by Payment   Levels




    I ,19w
    m     1987

          1960




Source:      USDA.




                                         28
APPENDIX1                                                                     APPENDIXI

                       FARMPKGRAMPAYMML'DATATAELES

         The source for all data in this appendix is USDA. Tables
I.1 through I.4 show the number of farms that received payments and
the average payments by production  specialty fran 198488.

Table 1.1:      Number of Participating     Farms and Average Payment by Production
                Specialty, 1985
                                                                            Percent of
                                 Numberof      Percent of    Average        total U.S.
                                   farlIE        farm         payment       payments
Total Participating      Farms    525,570          100.0     $10,490           100.0

Fmductim        Specialty:
      Cash grain                  270,277           51.4      12,644            62.0
      Allothercrapsa               47,940            9.1      15,803            13.7
      Beef,hog, sheep             132,424           25.2       5,849            14.1
      Dairy                        65,671           12.5       7,925             9.4
      All other livestock           9,257            1.8       4,686             0.8

Note: lbtals may not add due torcutiing.
aSeparate cotton-farm data not available.

Table 1.2:      Number of Participating     Farm    and Average Payment by Production
                specralty, 1986
                                                                           Percent of
                                 Numberof      Percent of    Average       total U.S.
                                   farms         farrrs      payment       payments
Total Participating      Farms    537,466          100.0     $14,614          100.0

ProductionspeCialty:
   Cash grain                     259,866           48.4      17,871           59.1
      Allothercropsa               48,464            9.0      19,794           12.2
      Beef, hog, *ep              153,495           28.6       9,967           19.5
      Dairy                        69,329           12.9       9,634            8.5
      All other livestock           6,311            1.2       8,403            0.7

Nate: Totals may notadddue to rounding.
aSeparate cotton-farm data not available.




                                              29
APPENDIX1                                                                     APPENDIX1

Table 1.3:      Number of Participatinq      Farm a&Average     Payment by production
                Specialty, 1987
                                                                           Percent of
                                  Numberof     Percent of    Average       total U.S.
                                    farm         farm        payment       payments
Total Participating       Farm    596,898           100.0    $18,017         100.0

Prcduction Specialty:
   Cash grain                     290,570            48.7     22,232          60.1
   cotton                          21,787             3.7     38,294           7.8
   Allothercrops                   54,616             9.2     12,799           6.5
   B-f,      hog,   *ep           153,283            25.7     12,080          17.2
   Dairy                           64,226            10.8     12,034           7.2
   Allotherlivestock               12,415             2.1     10,946           1.3

Note: Totals may not adddueto          rounding.

Table 1.4:      Number of Participating      Farm andAw?rage Payment by production
                Specialty, 1988
                                                                           Percent of
                                  Nmberof      Percent of    Average       total U.S.
                                    farm         farm        payment       payments
Weal Participating        Farms    632,690          100.0    $14,257         100.0

Production Specialty:
   Cash grain                      273,955           43.3     18,700           56.8
   cotton                           18,095                    32,785            6.6
   Allothercrops                    65,483           10'::     8,274            6.0
   Beef,     hog,   *ep            199,804           31.6     10,032           22.2
   Dairy                            69,596           11.0     10,423            8.0
   Allotherliwstock                  5,821            0.9      5,779            0.4

Note:      Totals may not add due tormrding.




                                               30
APPENDIX1                                                                       APPENDIX1


Tables I.5 through I.8 show the number of farm             that receied   payments ti     the
average payments by sales class fran 1985-88.

Table 1.5:     Number of Pa?Aicipatinq Farm and Averaqe Payment by SalesClass,
               1985

                                                                             Percent of
                                Numberof                                     total U.S.
                                  farm        ~zz,t       Of Awrage
                                                             payment         payments
!Lbtal Participating    Farm     525,570          100.0       $10,490          100.0

Sales Class:
   $500,000 or over               15,365            2.9        49,704           13.9
   $250,000 to $499,999           43,106            8.2        25,345           19.8
   $100,000 to $249,999          140,921           26.8        15,063           38.5
   $40,000 to $99,999            154,013           29.3         6,938           19.4
   $10,000 to $39,999            120,433           22.9         3,429            7.5
   $9,999 or less                 51,731            9.8         1,022            1.0

Note:    Totals my mtadd       due torcunding.


Table 1.6:     thmber of Participating     Farns and Average Payment by Sales Class,
               1986

                                                                             Percent of
                                Numberof      Percent of      Average        total U.S.
                                  fapm          fa?m3         payment        payments
Wal     Participating   Farm     537,466          100.0       $14,614          100.0

Sales class:
   $500,000 or over               15,588            2.9        64,049           12.7
   $250,000 to $499,999           34,651            6.5        37,049           16.4
   $100,000 to $249,999          144,099           26.8        20,885           38.3
   $40,000 to $99,999            156,261           29.1        11,614           23.1
   $10,000 to $39,999            131,695           24.5         4,956            8.3
   $9,999 or less                 55,172           10.3         1,723            1.2

Nate:    Totals my not adddue toramding.




                                             31
APPENDIX1                                                                  APPENDIX1

Table 1.7:     Number of Participating     Farms and Average Payment by Sales Class,
               1987
                                                                        Percent of
                                Numberof      Percent of   Average      total U.S.
                                  farm          farm       payment      payments
Total Participating     Farms    596,898           100.0   $18,017        100.0

Sales class:
   $500,000 or over               15,997             2.7    68,705         10.2
   $250,000 to $499,999           49,363             8.3    46,416         21.3
   $100,000 to $249,999          144,807            24.3    26,959         36.3
   $40,000 to $99,999            162,297            27.2    14,350         21.7
   $10,000 to $39,999            151,672            25.4     6,305          8.9
   $9,999 or less                 72,762            12.2     2,415          1.6

Note:   Totals my not add due to ramding.

Table 1.8:     Number of Participating     Farm and Average Payment by Sales Class,
               1YBt.4
                                                                        Percent of
                                Numberof      Percent of   Average      total U.S.
                                  farm          farm       payment      payments
Total Participating     Farm     632,690           100.0   $14,257         100.0

Sales class:
   $500,000 or over               21,701             3.4    56,571          13.6
   $250,000 to $499,999           52,260             8.3    35,599          20.6
   $100,000 to $249,999          154,060            24.4    21,364          36.5
   $40,000 to $99,999            159,691            25.2    10,917          19.3
   $10,000 to $39,999            156,591            24.8     4,930           8.6
   $9,999 or less                 88,324            14.0     1,410           1.4

NOW: Totals may not add due toraxding.




                                              32
APPmDIxI                                                                     APPENDIXI

Tables I.9 through 1.12 show the number of farm           that received payments and the
average payments by region frcxn 1985-88.

Table 1.9:     Number Of Participatinq     Farm and Averaqe Payment by Region, 1985
                                                                          Percent of
                                Numberof     Percent of    Average        total U.S.
                                  farm         farm        payment        payments
Total Participating     Farms    525,570          100.0     $10,490         100.0

F4egion:
   Ncxtheast                      20,993            4.0       3,947           1.5
   Lake States                    83,317           15.9       8,078          12.2
   corn Belt                     163,294           31.1       7,842          23.2
   Northern Plains                98,598           18.8      12,838          23.0
   Appalachia                     34,201            6.5       3,065           1.9
   Sakheast                       13,169            2.5       8,486           2.0
   Delta                          15,372            2.9      26,185           7.3
   Sahern Plains                  45,730            8.7      16,436          13.6
   Mamtain                        31,136            5.9      15,230           8.6
   Pacific                        19,759            3.8      18,529           6.6

Note:     Totals may not add due to ramding.


Table 1.10:     Number of Participating    Farm and Average Payment by Region,      1986

                                                                          Percent of
                                Ntirof       percent of    Average        total U.S.
                                   farm        farm        payment        payments
Total Participating     Farm     537,466          100.0     $14,614         100.0

Region:
   Northeast                      13,486            2.5       8,409           1.4
   Lake States                    87,278           16.2      11,078          12.3
   Corn Belt                     174,123           32.4      12,131          26.9
   Northern Plains               108,894           20.3      17,902          24.8
   Appalachia                     34,854            6.5       6,345           2.8
   Southeast                      21,528            4.0       6,908           1.9
   Delta                          17,208            3.2      24,886           5.5
   Scxlthern Plains               40,183            7.5      20,500          10.5
   Mamtain                        29,377            5.5      23,217           8.7
   Pacific                        10,535            2.0      38,765           5.2

NO*:      Totals may not add due to ramding.


                                             33
APPENDIXI                                                                 APPENDIX1


Table 1.11:     Number of Participating    Farm and Average Payment by Region,   1987

                                                                       Percent of
                               Numberof      Percent of   Average      total U.S.
                                 farm          farm       EsY!E!s      payments
TUtal Participating    Farm      596,898          100.0   $18,017        100.0

Region:
  Northeast                       17,071            2.9     9,378          1.5
   Lake States                    94,787           15.9    15,308         13.5
   Corn Belt                     189,993           31.8    19,373         34.2
   Northern Plains               108,516           18.2    19,481         19.7
   Appalachia                     49,244            8.3     7,898          3.6
   Wtheast                        26,264            4.4    14,191          3.5
   Delta                          19,757            3.3    25,747          4.7
   Southern Plains                45,125            7.6    19,339          8.1
   Mamtain                        32,292            5.4    24,384          7.3
   Pacific                        13,848            2.3    30,176          3.9

Note:     Totals may not add due to raunding.


Table 1.12:     Number of Participating    Farm ati Average Payment by Fkqion, 1988
                                                                       Percent of
                                Nmberof      Percent of   Average      total U.S.
                                  farm         farm       payment      payments
Total Participating     Farm     632,690          100.0   $14,257        100.0

Region:
   Northeast                      22,524            3.6     7,410          1.9
   Lake States                   107,494           17.0    12,633         15.1
   CornBelt                      186,074           29.4    15,158         31.3
   Northern Plains               115,086           18.2    16,502         21.1
   Appalachia                     55,360            8.8     5,525          3.4
   Scutheast                      29,863            4.7     6,946          2.3
   Delta                          22,967            3.6    21,458          5.5
   Scuthern Plains                52,134            8.2    16,256          9.4
   Mountain                       27,269            4.3    21,158          6.4
   Pacific                        13,919            2.2    24,782          3.8

Note:     Totals may not add due to ramding.




                                             34
APPENDIX1                                                                               APPENDIX1

Tables I.13 through I.16 show the number of farms that received payments arid the
average payments by level of net cash farm income fran 1985-88.

Table 1.13:    Number of PartiCiPatinq        Farms and Average Payment by Level               of Net
               Cash Farm Incane, 1985

                                                                                     Percent of
                                  Numberof      Percent of             Average       total U.S.
                                    farms         farms                payment       payments
!Lbtal Participating    Farms      525,570           100.0             $10,490         100.0

Net cash farm incune:
                                    39,435             7.5              34,047          24.4
                                    97,002            18.5              15,113          26.6
                                   144,254            27.5               8,370          21.9
   $1 to $9,999                     94,694            18.0               4,455           7.7
   $0 to s-9,999                    78,088            14.9               3,914           5.5
   $-10,000 to -$39,999             47,904             9.1               7,465           6.5
   less than -$40,000               24,192             4.6              17,039           7.5

NMe:    meals may not add due to rounding.




                                                                                     Percent of
                                  Number of        Percent of Average                total U.S.
         ..+                                         f--      - peryarent            @z!!EEE
    s.
Total Parti&@tiz.                       466                            #4$1r         q tool0
                                                             e;                  :
Netcashfarmincune:              -.
   $100,000 or mre            g$!j? 35,603             6.6              50,440          22.9
   $40,000 to $99,999               90,935            16.9                              25.6
   $10,000 to $39,999              163,571            30.4                              25.3
   $1 to $9,999                    105,366            19.6        -2     6,525           8.8
   $0 to s-9,999                    77,684            14.5               5,859           5.8
   $-10,000  to -$39,999            46,855             8.7              11,297           6.7
   less than -$40,000               17,452             3.3              22,551           5.0
                                                                                               -B
Note:   mals     may         add due to rwtiing.
                       %_-




                                               35
APPENDIXI                                                                      APPENDIX1

Table 1.15:        Number of Participating     Farms and Average Payment by Level     of Net
                   Cash Farm Incane, 1987
                                                                           Percent of
                                    Numberof     Percent of   Average      total U.S.
                                      farllw       farms      payment      payments
'Ibtal   Participating    Farrrrs    596,898         100.0    $18,017         100.0

Net cash farm incuw:
   $100,000 or more                   44,533           7.5     53,867          22.3
    $40,000 to $99,999                96,290          16.1     28,658          25.7
    $10,000 to $39,999               184,992          31.0     14,846          25.5
    $1 to $9,999                     128,485          21.5      8,000           9.6
    $0 to s-9,999                     85,457          14.3      7,128           5.7
    $-10,000  to -$39,999             43,374           7.3     16,101           6.5
    less than -$40,000                13,768           2.3     37,334           4.8

Note:     totals    may not add due to randing.


Table 1.16:        Number of Participating     Farn~ and Average Payment by Level of Net
                   Cash Farm Inccm~, 1988
                                                                            Percent of
                                    Numberof     Percent of   Average       total U.S.
                                      farms        farrrs     payment       payments
Tatal Participating       Farms      632,690         100.0    $14,257         100.0

Netcashfarmin~:
    $100,000 or mre                   38,657           6.1     42,888          18.4
    $40,000 to $99,999                93,512          14.8     23,662          24.5
    $10,000 to $39,999               178,735          28.3     12,976          25.7
    $1 to $9,999                     137,420          21.7      5,806           8.8
    $0 to $-9,999                    107,494          17.0      5,842           7.0
    $-10,000  to -$39,999             57,701           9.1     14,350           9.2
    less than -$40,000                19,171           3.0     30,049           6.4

Note:     lbtals    may notaddduetorwnding.




                                                36
APPENDIX1                                                                        APPENDIXI

Tables I.17 thrmgh 1.20 show the number of farm that received payments ard the
average payments by level of off-farm incune fran 1985-88.

Table 1.17:       Number     of Participating    Farrrs and Average Payment by bezel of
                  Off-farm     Incane, 1985
                                                                             Percent of
                                     Nunkerof      Percent of   Average      total U.S.
                                       farrrs        farm       pawnt        payments
Total Participating          Farms    525,570          100.0    $10,490         100.0

Off-farm     incane:
     $100,000 or mre                    6,908            1.3     12,881           1.6
     $40,000 to $99,999                37,216            7.1      8,445           5.7
     $10,000 to $39,999               169,541           32.3      8,062          24.8
     $0 to $9,999                     311,905           59.4     12,001          67.9

Note:      Totals may rrotadddue        torcxlrding.


Table 1.18:      Nunber of Participating        Farms a& Average Payment by Level       of
                 Off-farm Incane, 1986
                                                                             Percent of
                                     Nunberof      Percent of   Average      total U.S.
                                       farms         farms      payment      payments
llotal   Participating     Farms      537,466          100.0    $14,614         100.0

off-farm     incane:
    $100,000 or mre                     7,240            1.4     25,026           2.3
    $40,000 to $99,999                 31,558            5.9     12,023           4.8
    $10,000 to $39,999                181,173           33.7     11,862          27.4
    $0 to $9,999                      317,496           59.1     16,204          65.5

tW2:       Totals q      not add due to rending.




                                                  37
APPENDIXI                                                                       APPENDIXI

Table 1.19:      Number of Participating       Farms an3 Average Payment by Level of
                 Off-farm Incane, 1987
                                                                            Percent of
                                    Numberof     Percent of   Average       total U.S.
                                      farms        farms      payment       payments
Total Participating         Farms    596,898         100.0    $18,017          100.0

Off-farm   incane:
    $100,000 or nxxe                   6,211           1.0     35,000            2.0
    $40,000 to $99,999                57,739           9.7     12,931            6.9
    $10,000 to $39,999               242,433          40.6     15,719           35.4
    $0 to $9,999                     290,438          48.7     20,570           55.6

Note:      Totals may not add due to rcxlnding.




Table 1.20:      Number     of Participating   Farms arr3 Average Payment by Level     of
                 Off-farm     Inccxne, 1988
                                                                            Percent of
                                    Numberof     Percent of   Average       total U.S.
                                      farITS       farnrs     payment       payments
3Xa.l Participating         Farms    632,690         100.0    $14,257          100.0

off-farm     incane:
   $100,000 or more                   10,476           1.7     18,401            2.1
   $40,000 to $99,999                 65,622          10.4     10,755            7.8
   $10,000 to $39,999                255,973          40.5     11,401           32.4
   $0 to $9,999                      300,008          47.4     17,340           57.7

Note:      Totals may not add due to rmtiing.




                                                38
APPmDIxI                                                                  APPENDIX1

Tables I.21 through I.24 show the number of farms that received payments and the
average payments by level of government payments fran 1985-88.

Table 1.21:        Number of Participatinq Farm ati Average Payment by Level of
                   @verMlent Payments, 1985
                                                                        Percent of
                                     Nu&erof     Percent of   Average   total U.S.
                                       farlm       farm       eY!!!z    payments
lkXal Participating           Farm    525,570         100.0   $10,490     100.0

Payment level:
   $50,000 or mre                      18,520           3.5    78,127      26.2
    $40,000   to    $49,999            10,556           2.0    44,443       8.5
    $30,000   to    $39,999            13,986                  34,244       8.7
    $20,000   to    $29,999            35,608           2:     23,602      15.2
    $10,000   to    $19,999            78,742          15.0    13,813      19.7
    less than      $10,000            368,158          70.1     3,233      21.6

NOtt?:   TatdlSnrirynot adddue tora&ing.

Table 1.22:        Nunber of Participating Farms arr3 Awrage Payment by Level of
                   Gmmment Payments, 1986
                                                                        Percent of
                                     Nmber of    Percent of   Average   total U.S.
                                       farm        farm3      EsY!E!z   payments
Total Participating           Farm     537,466        100.0   $14,614     100.0

Payment level:
   $50,000 or more                      29,688          5.5    83,344      31.5
    $40,000   to    $49,999             18,779          3.5    45,277      10.8
    $30,000   to    $39,999             24,404          t:;    34,257      10.6
    $20,000   to    $29,999             45,708                 24,318      14.2
    $10,000   to    $19,999             99,132         18.4    14,224      18.0
    less than      $10,000             319,755         59.5     3,666      14.9

tWb2: Wals          my mt adddue to rounding.




                                                 39
APPENDIX1                                                                  AmmLmI

Table 1.23:       Number of Participatinq Farms am3 Average Payment by revel of
                  Gwernment Payments, 1987
                                                                        Percent of
                                     Numberof   Percent of    Average   total U.S.
                                       farm       farm        payment   payments
T&al    Participating        Farms    596,898        100.0    $18,017     100.0

Payment level:
   $50,000 or more                     49,967          8.4     81,042      37.7
    $40,000 to     $49,999             25,881          4.3     43,726      10.5
    $30,000 to     $39,999             34,215          5.7     34,062      10.8
    $20,000 to     $29,999             61,590         10.3     24,447      14.0
    $10,000 to     $19,999            119,573         20.0     14,269      15.9
    less than     $10,000             305,673         51.2      3,912      11.1

Note:    Totals    my   not   add due to ramling.

Table 1.24:       Nunber of Participating Farm and Averaqe Payment by Level        of
                  Goverment Payments, 1988
                                                                        Percent of
                                     Nunberof   Percent of    Average   total U.S.
                                       farm       farms       payment   payments

Total Participating          Farms    632,690        100.0    $14,257     100.0

Payment level:
   $50,000 or     mre                  33,889          5.4     77,834      29.2
   $40,000 to      $49,999             20,976          3.3     44,393      10.3
   $30,000 to      $39,999             29,383                  34,084      11.1
   $20,000 to      $29,999             56,519          ii:8    24,395      15.3
   $10,000 to      $19,999            125,555         19.8     14,041      19.5
   less than      $10,000             366,367         57.9      3,571      14.5

Note:    Tbtals may not add due toramding.




                                                40
APPENDIX II                                                APPENDIX II


              MAJOR CONTRIBUTORS TO THIS BRIEFING REPORT
RESOURCES, COMMUNITY, AND ECONOMIC DEVELOPMENT DIVISION,
WASHINGTON, D.C.
Robert E. Levin, Assistant     Director
Patrick J. Kalk, Evaluator-in-Charge
LaSonya R. Jackson,  Evaluator




                                    41
                                    BIBLIOGRAPHY
1.    Ahearn, Mary, and John E. Lee, Jr.,       "Multiple    Job Holding Among
Farm Operator      Households   in the United States:     Historical
Perspective      and Future Prospect."   United States Department       of
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2. Brown, David L., J. Norman Reid, Herman Bluestone,            David A.
McGranahan, Sara M. Mazie.        Rural Economic Development     in the
1980s:      Prospects for the Future.     United States Department     of
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Report No. 69. Washington:        September 1988.

3. Harrington,     David, and Thomas A. Carlin.         The U.S.       Farm Sector:
How Is It Weathering     the 198Os?    Agriculture     Information       Bulletin
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4. Ahearn, Mary, Susan Bentley,           Thomas Carlin.    Farming-Dependent
Counties    and the Financial     Well-Being   of Farm Operator    Households.
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5. United States Department       of Agriculture/Economic          Research
Service.    Economic Indicators     of the Farm Sector:           Farm Sector
Review, 1987.    ECIFS 7-4.     Washington:      April   1989.


6. Findeis,      Jill L. "Interdependencies     Between the Farm and
Nonfarm Sectors."      Future of Pennsylvania     Agriculture  and the Rural
Community:     A Regional   Perspective,    Penn State College of
Agriculture    and the Penn State Agricultural       Advisory Council, March
1987,    pp. 51-56.

7. United States Department     of Agriculture/Economic              Research
Service.  Agricultural Outlook.     AO-156.      Washington:           September
1989.


8. United States Department          of Agriculture/Economic       Research
Service.      1989 Aqricultural    Chartbook.       Agriculture   Handbook No.
684.     Washington:     March 1989.




                                        42
9. Lee, Chinkook,          Gerald Schluter,    William    Edmondson, and Darryl
Wills.     - Measuring   the Size of the U.S. Food and Fiber System,           -
Agricultural       Economic Report No. 566.         United States Department     of
AgricultUre/ECOnOmiC         Research Service.       Washington:    March 1987.

10.   United States General Accounting    Office.          Rural Development:
Federal   Programs That Focus on Rural America           and Its Economic
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11.     United States Department            of Agriculture/Economic       Research
Service.      Financial      Characteristics       of U.S. Farms, January 1, 1988.
Agriculture      Information      Bulletin     No.     551.   Washington:    October
1988.


12.    United States Department   of Agriculture/Economic             Research
Service.     Farm Costs and Returns Survey,      1988.


13.  United States Department         of Commerce, Bureau of the Census.
1987 Census of Agriculture.          AC87-A-5 1.  Volume 1. Washington:
November 1989.

14.    United States Department     of Agriculture/Economic             Research
Service.      Agricultural Outlook.    AO-160.      Washington:          January-
February     1990.


15.   Majchrowicz,   Alexander    T. Patterns       of Change in the Rural
Economy, 1969-86,    Rural Development        Research Report No. 73.
United States Department       of Agriculture/Economic       Research Service,
Washington:     December 1989.

16.   United States     General Accounting   Office.        Agriculture       Issues.
GAO/OCG-89-12TR.       Washington:   November 1988.

17.    United States General Accounting      Office.  Farm Programs:
Analysis    of Options for Targeting     Payments and Crop Loans.
GAO/RCED-87- 144.     Washington:    September 1987.

18.  United States General Accounting   Office.             Progress      Made Toward
Goals of 1985 Farm Bill.   GAO/RCED-89-76BR.              Washington:       March
1989 .


(150003)



                                       43
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