What Did They Do with the Money? An Analysis of Tobacco Buyout Recipients’ Expenditure Choices

There are many expenditure options available to farmers who received a tobacco buyout check. A multinomial probit model is used to analyze how farmer, business, and household characteristics influence the choice of expenditure option. Results of the study show that farmers tend to use the tobacco buyout payments as a special income account which they spend in a focused manner, and their expenditure choices vary by gender and by age groups. Findings also reveal that farmers who plan to stay in tobacco production are more likely to invest in new or existing on-farm activities.


Issue Date:
2008
Publication Type:
Journal Article
DOI and Other Identifiers:
0738-8950 (Other)
PURL Identifier:
http://purl.umn.edu/90641
Published in:
Journal of Agribusiness, Volume 26, Number 2
Page range:
175-198
Total Pages:
24




 Record created 2017-04-01, last modified 2017-08-25

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