FARM INCOME VARIABILITY AND THE SUPPLY OF OFF-FARM LABOR

If farmers are risk averse, greater farm income variability should inc rease off-farm labor supply. This effect is confirmed for a sample of Kansas farmers. Off-farm employment af farmers and their spouses is al so found to be significantly influenced by farm experience, off-farm w ork experience, farm size, leverage, efficiency, and farm-specific edu cation. In addition, farm operators and spouses who receive significan t income support through government farm programs are less likely tu w ork off the farm. This may suggest that policy changes reducing farm i ncome support payments may increase off-farm employment of farmers and their spouses.