Review reveals nuanced economic disparities in farm households, highlighting the need for linked administrative data to assess total welfare and target policy.
Key Points
Trace the historical evolution of definitions, analytical frameworks, and data sources used to estimate and compare farm household economic welfare over the past century.
Synthesized historical and contemporary agricultural economics literature to evaluate the distinction between farm business returns and total household income.
Assessed data systems across developed nations, comparing farm accountancy records against linked household surveys and administrative tax datasets.
Farm households are not universally income-disadvantaged; income gaps often narrow or disappear after controlling for household size, composition, and off-farm earnings.
Income volatility, distributional inequities, and the prevalence of asset-rich but cash-constrained households remain significant policy concerns.
Traditional farm accountancy data fail to capture overall household welfare, demonstrating the need for linked administrative systems to support policy targeting.