We study the relationship between the off-farm labor decision and the limited-resource farmers' and spouses' off-farm wages, experience, education, and sources of income. We found that farmers' and spouses' off-farm experience and wages are significant factors in explaining the off-farm labor supply decision. Contrary to expectations, farm income variability is not significant in the farmers' and spouses' decision to seek off-farm work. The off-farm labor supply of farmers and their spouses is negatively correlated with income transfers from the government. It was also found that the spouse is a residual supplier of on-farm and off-farm labor.

This paper examines the linkages among agricultural total factor productivity, farm size, and farm household participation in the off-farm labor market for the Southeastern states for the period 1960-1996. We find evidence of a simultaneous relationship between productivity and measures of farm structure. The results support the expected relationships between the endogenous variables, namely that productivity and farm size are positively related, farm size and off-farm work participation are negatively related, and off-farm work and productivity are negatively related. We find positive and significant impacts of government policies (investments in public research, extension, and highways) on productivity growth.

This research uses data from the 2004 Agricultural Resource Management Survey and probit regression to examine the determinants of poverty among U.S. farm households. The findings reveal, among others, the importance of a livelihood strategy that combines participation in government programs and off-farm work in lowering poverty rates. Findings also show the importance of educational attainment of the farm operator in mitigating poverty, but only when poverty is measured on a relative rather than an absolute basis. Policy recommendations are provided in the context of these findings.