Growth, Stability, and Resilience in U.S. Farm Income

Abstract

This dissertation investigates the effects of government payments, extreme weather events, and renewable energy expansion on U.S. farm income. Chapter 1 assesses the impact of two major federal programs—the Conservation Reserve Program (CRP) and the Federal Crop Insurance Program—on the stability and resilience of market-based farm income, excluding government payments. Chapter 2 analyzes the distributional effects of extreme heat on farm profitability across U.S. counties using recentered influence function regressions. Chapter 3 examines how the expansion of wind and solar energy influences the stability and resilience of market-based farm income. The study utilizes over 50 years of farm income and expenditure data, incorporating various key explanatory variables, and employs various econometric techniques, including two-stage least squares, unconditional quantile regression, probit models with instrumental variables, and panel fixed effects models. The collective findings have important policy implications, particularly for Farm Bill Titles I (Commodities), II (Conservation), IX (Energy), and XI (Crop Insurance).