AN INVESTIGATION OF DIFFERENCES IN AGRICULTURAL EXPENDITURE BY STATE GOVERNMENT

Agriculture department programs in 43 states surveyed offer similar services in regulation, market promotion, and natural resource conservation but are organized differently. Two OLS equations were estimated to explain state agriculture department expenditures as a function of gross farm sales, farm receipts mix, degree of government centralization, the proportion of metropolitan area residents, and tax capacity. A positive relation was found between state agricultural spending and gross farm sales and the percent of fruit/vegetables farm receipts. However, the results cast doubt over the Leviathan thesis of increasing government spending resulting from bureaucratic power.