Elasticities of Profit Measures with Respect to Changes in Observed Variables
| Dependent Variable | Revenue | Variable Cost | ROVC |
|---|---|---|---|
| Semielasticities | |||
| Organic status | 0.154 (0.117) | 0.229 (0.113) | −0.795 (0.791) |
| Soil productivity | 0.579*** (0.074) | 0.318*** (0.082) | 1.226*** (0.550) |
| Organic farms in county | 0.000 (0.001) | 0.001 (0.001) | −0.006* (0.005) |
| County percent irrigated | 0.647*** (0.058) | 0.525*** (0.058) | 0.772*** (0.354) |
| Crop diversity Gini | 0.457*** (0.165) | −0.257 (0.180) | 0.938 (1.175) |
| Debt-to-asset ratio | 0.003*** (0.001) | 0.005*** (0.001) | 0.000 (0.009) |
| Operator age | 0.000*** (0.000) | 0.000*** (0.000) | 0.000*** (0.000) |
| Elasticities | |||
| County household income | 0.122** (0.057) | 0.278*** (0.069) | −0.359 (0.402) |
| Fixed costs | 0.103*** (0.008) | 0.208*** (0.011) | −0.248*** (0.050) |
| Subsidy receipts | 0.018*** (0.004) | 0.034*** (0.004) | 0.004 (0.030) |
| Off-farm income | −0.007*** (0.002) | 0.005** (0.003) | −0.064*** (0.017) |
| Conservation payments | −0.013*** | −0.008*** | −0.029*** |
| R-squared | 0.626 | 0.636 | 0.151 |
Note: Tables 1 and 2 provide variable descriptions. Standard errors are in parentheses. R2 refers to goodness-of-fit for the regression corresponding to the given elasticity calculations. Year, farm type, crop reporting district, and urban proximity index fixed effects are included in the regressions used to compute the elasticities shown above, in addition to variables listed.
* p < 0.1;
** p < 0.05;
↵*** p < 0.01.