Agriculture Reference
In-Depth Information
Table 4.2
Definition of variables
Dependent variables
CONTRACT
=
1 if contract was a cropshare contract;=0ifacash rent contract.
Independent variables
ABSENT
=
1 if landowner lived in county different than contracted land; = 0 otherwise.
ACRES
=
number of acres covered by contract.
ACRES OWNED
=
percentage of farmed acres that are owned by the farmer.
AGE
=
farmer's age in years (for British Columbia and Louisiana).
AGE
=
1 if farmer is younger than 25,
=
2 if 25-34 years old,
=
3 if 35-44 years old,
=
4 if 45-54 years old,
=
5 if 55-64 years old,
=
6 if older than 65 (for Nebraska and South Dakota).
DENSITY
=
population per square mile in the county of farm operation.
FAMILY
=
1 if landowner and farmer were related; = 0 otherwise.
FARM INCOME
=
1 if less than 30% of total income comes from farming.
=
2 if between 30% and 49%.
=
3 if between 50% and 80%.
=
4 if more than 80%.
FARM SALES
=
total farm sales for 1992.
HAY
=
1 if hay and other grass crops were the major income-producing crops;
=
0 otherwise.
INSTITUTION
=
1 if the landowner is an institution (available for Nebraska and South Dakota farmer sample);
=
0 if the owner is an individual.
IRRIGATED
=
1 if land is irrigated;=0ifdryland.
RICE
=
1 if the crop was rice; = 0 otherwise.
ROW CROP
=
1 if a row crop (corn, sugar beets, sugarcane soybeans, sorghum);
=
0 if not a row crop (wheat, oats, barley).
TREES
=
1 if fruit was grown (e.g., apples, pears, etc.);
=
0 if no fruit was grown.
Prediction 4.1 says that a cropshare contract is most likely to occur when the costs of
dividing the crop are relatively low. Crops can be divided into two categories to identify
changes in output division costs: crops sold through public markets and crops sold through
private sales. Most cash crops (grains typically) grown in our jurisdictions are sold at local
elevators, probably within a thirty-mile drive, where the crop is independently weighed,
graded, and, if there is a cropshare contract, divided. Most farm towns, especially on the
Great Plains, have very few elevators, and it is usually well known where farmers take their
crops. 24 Crops that must go to an elevator are relatively easy to measure. Alfalfa, brome,
and native hay are crops in our sample that are not weighed and sold at an elevator or other
third-party location. Because these hay crops are more difficult to measure at the time of

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