A new indicator of farm income dependence is developed for identifying differences in resource allocation among farm households. Analysis of farm household data between 1996 and 2006 identifies the index as being more informative and indicative of structural responses than the typical reliance on shares of farm income in the total for the representative household. Extensions of the index and complementarities with other measures are straightforward and offer potential valuable insight into coming trends in U.S. agriculture as the farm household population responds to higher prices induced by the biofuel boom.


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