Abstracts Economics

An evaluation of family income variation on low-income farms in western Oregon

by Donald Eugene Long

The primary purpose of this thesis is to determine the economic nature of low incomes on low-income farms in western Oregon. An economic model containing variables that contribute to family income is developed for farm operators in the study area. Regression analysis is used to determine the significant variables contributing to family income variation. From the results of the regression analysis, an income function is derived for low-income farm families of western Oregon. An analysis of the variables included in the income function is presented, as well as a discussion of the variables that were determined not to be significant from the regression analysis. It is concluded that insufficient farm size, inadequate capital for farm expansion, lack of training or skill, inefficient use of available resources, age of the operator, lack of formal education, and lack of mobility are the main causes of low incomes in the thirteen northwestern counties of Oregon. The findings of this study tend to support other studies of a similar nature. Finally, policy alternatives and recommendations are given. It is determined the avenues of assistance open to older low-income farm operators and those with less formal education are direct aid programs. The training necessary to obtain non-farm employment is the most feasible means for the younger, low-income farm operators. It is determined that there is a relatively small number of low-income farm operators in western Oregon with adequate resources to "farm their way out of poverty."