Sources of Variation in the Level of Living of Farm Operators in the United States

Abstract

The major hypothesis to be tested in this analysis is that income or economic class of farm will account for most of variation in percentage of farms reporting a level of living item. A minor or second hypothesis is that income or economic class will account for approximately same amount of variation for each of seven items used in this study of level of living. The analysis, however, shows that both of these hypotheses must be rejected. Economic factors do not explain a major part of total variation in percentage of farms reporting these seven level of living items. In case of home freezers, income accounted for just over three-fourths of variation. And, approximately two-thirds of variation in tractors is associated with income. On other hand, to income is attributable only 27.1 percent and 29.5 percent of variation in distribution of television sets and telephones, respectively. A -ATERIAL comfort, ithasbeensuggested, is one of major value-orientations _ > of American society.' The subjective aspect of this orientation is usually stated in terms of some anticipated or accepted level of well-being of individuals and families. Thus, striving to improve one's material comfort and satisfactions derived therefrom has become a part of the American way of Life. The measurable manifestation of this configuration is represented by concept of level of living. In turn, level of living is defined in terms of possession, use and availability for consumption of selected facilities, equipment and services. On this basis, general term of level of living becomes subject to quantitative analysis. The purposes of this study are: (1) to determine extent of variation in selected level of living items of farm operators in United States, and (2) to determine some of factors which are associated with these distribution patterns and proportion of variance which is explained by each factor. To what extent does income account for variations in level of living? How important are regional factors-geographic or cultural-in determining distribution of these level of living items among farm operators? These are major questions to be answered, but specific hypotheses will be stated at appropriate place in analysis that follows. Before proceeding with analysis and discussion of specific items, attention is directed briefly to source of data and method of analysis, SOURCE OF DATA AND METHOD OF ANALYSIS The basic data for this study were derived from 1954 United States Census of Agriculture. Farms were classified by economic class of farm, and this classification was made on basis of three factors: ... total value of all farm products sold, number of days farm operator worked off farm, and relationship of income received from nonfarm sources of operator and members of his family to value of all farm products sold.2 Farms were then divided into two major groups: commercial and other or noncommercial. Commercial farms were divided into six groups on basis of total value of all farm products sold. The resulting six classes were as follows: Class of Farmn Value of Farm Products Sold I $25,000 or more II $10,000 to $24,999 III $5,000 to $9,999 IV $2,500 to $4,999 V $1,200 to $2,499 VI *$250 to $1,199 * Under certain specified conditions. * Read before twenty-third annual meeting of Southern Sociological Society in Atlanta, Georgia, April 8, 1960. Contribution from Rural Sociology Department, North Carolina Agricultural Experiment Station, Raleigh, North Carolina. Published with approval of Director of Research as Paper No. 1155 of Journal Series. 1 Robin M. Williams, Jr., American Society (New York: Alfred A. Knopf, 1951), p. 406. 2 United States Census of Agriculture, 1954, Vol. 1,