Economic Inequality among US Farm Households: Assessment of the Role of the 2008-2009 Financial Crisis

Abstract

This paper aims to evaluate the potential impact of the 2008-2009 financial crisis on the economic inequality among US farm households. To accomplish this objective, a multivariate regression procedure and a decade-long pooled state-level cross sections of data from the Agricultural Resource Management Survey (ARMS) were used. Among the major findings is the inverse relationship between both income and wealth inequality and factors such as when the famer has a college education or beyond, when the farm is owned partly or fully, and when the farm is located in the Midwestern region. These findings underscore the importance, in terms of policy perspectives aimed at lowering economic inequality, of investing in human capital and in maintaining a stable agricultural economy.