Effects of Alternative Farm Policies on Farm and Nonfarm Sectors of Rural America

During the last three decades, a major change affecting rural America has been the dramatic increase in the productivity of agricultural labor. Output per farm worker increased by 237 percent between 1947 and 1970. Although this growth in productivity provided increased income to some farm operators, it also resulted in decreased income opportunities for others. This decrease in opportunities led to migration of people from rural to urban areas. As the farming industry became more mechanized and as more rural residents were forced to migrate to urban areas in quest of jobs, the economic viability of many rural communities declined drastically. Mayer summarizes these changes in economic activity as follows: “… the changing structure of agricultural production has significantly altered the flows of money in rural towns. More money flows to sources in urban areas and less remains to provide jobs in rural towns. As mechanization of agriculture increased and as capital intensification occurred, rural towns have experienced a slow draw-down of economic vitality.”