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Farm Income and Government Payments to Agriculture in Nebraska

Farm income in Nebraska reached a record level of $2,117 million in 1987, of which $1,275 million (or sixty percent) was received in the form of direct government payments. This chapter traces the recent history of farm income and direct government payments and describes the elements of the farm program that have had significant influence upon the Nebraska economy. The sensitivity of the Nebraska economy to movements in the farm sector is analyzed. Results from an econometric simulation analysis indicate that relatively strong multiplier effects occur in the state economy as a result of movements in farm income.