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Abstract
Minimum wage legislation which results in higher avcrage wage rates for farm laborers would affect the
assct stmcture and income flows of farm operators. A simulation model of financial struchlre of thc
farm sector is uscd to show that highcr wage rates would result in inereased nonreal estate assets and
debt relative to real estate assets and debt. Proprietors' equities would decline. Simulation results indicated
that reduetions in net farm income due to higher wage rates would he partially offset by higher
nonfaml income of farm operators and their families.