Agriculture Reference
In-Depth Information
Independent Variables
LAND VALUE
=
total value in $1,000s of all owned land multiplied by the equity in the farm.
LANDOWNER
HUMAN CAPITAL
=
1 if landowner is not farming, never was farmer, or is widow;
=
0 otherwise.
LEASED ACRES
=
the fraction of the farmer's total farming acreage in the current lease.
LIVE ON FARM
=
1 if farmer lives on his farm.
MARKET
=
1 if the input is seed, fertilizer, herbicide, or insecticide;
=
0 if another input.
MILES
=
number of miles land plot is from homebase.
MULTIPLE EQUIPMENT
=
1 if second or third truck or tractor;
=
0 if there is just one piece of equipment.
NET WEALTH
=
WEALTH minus the value of either land, equipment or buildings, depending on
the regression.
NEW FARMER
=
1 if farmer is new within five years;
=
0 if farmer has not changed.
NEW LAND OWNER
=
1 if land owner is new within five years;
=
0 if landowner has not changed.
NUMBER OF EQUIPMENT
=
the total number of pieces of equipment on the farm.
NUMBER INPUTS
CHANGED
=
1 if more inputs were shared in past five years;=0ifnot.
PASTURE
=
1 if land was used for grazing.
REGIONAL CV
=
coefficient of variation for crop yield in a region.
REGIONAL MEAN
=
mean crop yield in a region.
REGlONAL STD
=
standard deviation of crop yield in a region.
ROW CROP
=
1 if row crop (corn, sugar beets, sugarcane soybeans, sorghum);
=
0 if not a row crop (wheat, oats, barley).
ROW*HAY
=
ROW
×
HAY.
SHARED EQUIPMENT
=
1 if equipment is shared with another farmer;
=
0 if it is not shared.
SIZE
=
average size of farm in county of lease.
SPECIALIZED
EQUIPMENT = 1 if harvest, planting, or crop specific equipment;
= 0 if equipment is general.
STATE CV = coefficient of variation for crop yield in a state or province.
TREES = 1 if fruit was grown (e.g., apples, pears, etc.);
= 0 if no fruit was grown.
VALUE = average per-acre dollar value of farmland in county of lease.
WEALTH = total value (in dollars) of all owned buildings, equipment, and land multiplied
by the equity in the farm.
WIDOW = 1 if the farmland owner is a farm widow;=0ifnotawidow.
WORKERS = number of different workers on farm in 1992.
YEARS DURATION = number of years contract has been in place.
a
There are many crops that have similar dummy variables. For example, WHEAT=1ifwheat is the major income
producing crop, and so on.
