Effects on Differing Farm Policies on Farm Structure and Dynamics

The U.S. farm sector is characterized by a great deal of heterogeneity. One reason for the heterogeneity in farm sizes is the multiple objectives of producers, which in addition to profit‐making, include a high‐quality rural lifestyle. The traditional aggregate indicators capture the heterogeneity, but relatively is knowing about the changing dynamics of the U.S. farm sector. This chapter explores the dynamics of agriculture by considering exit, entry, and volatility using farm‐level data from 1978 to 1997 and the mobility of surviving farms during this period