A Neoclassical Analysis of the U. S. Farm Sector, 1948–1970

The impacts of major exogenous forces on the farm sector are measured using a seven equation model. Annual estimates of the parameters of an aggregate Cobb‐Douglas production function are obtained by using relative market shares. First order conditions for four groups of inputs are derived. Time series and ordinary least squares are used to estimate the supply for farm labor and the demand for farm output. Technological change, exogenous price changes, and population growth are the major exogenous influences. Roughly 90 percent of farm program benefits have accrued to landowners.