Document Type

Thesis - University Access Only

Award Date

2012

Degree Name

Master of Science (MS)

Department / School

Economics

First Advisor

Dwight Adamson

Abstract

This essay focuses on the decision of farm and ranch operators to remain or exit the agricultural industry of South Dakota. The efficiency theory, exit-barrier theory, and life-cycle theory of farm exit decision are discussed and tested. An emphasis is placed on the role of government payments in the decision to remain or exit the industry. Farms are analyzed and organized into six different sizes by their value of sales in 1982 dollars. The USDA longitudinal Census data set is used from the years of 1982-2007 for the analysis. A probit exit model is used to find how the variables of interest affect the likelihood of a farm exit. The results of the pro bit exit model are used to calculate the probability of a farm operator exit given certain characteristic which are associated with one of the three exit theories with an emphasis on government payments.

Library of Congress Subject Headings

Farmers -- South Dakota -- Attitudes
Farms -- Economic aspects -- South Dakota
Farmers -- South Dakota -- Economic conditions

Publisher

South Dakota State University

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Rights Statement

In Copyright