Influence Factors of Farmer Families Net Income: An Empirical Study Based on Ridge Regression

Studies on the farmers income are very important to solution of the problems in Agriculture, Countryside and Farmer. The influence factors of farmers' income are analyzed with ridge regression using the family business net income data in 1985-2005. The results show that the total power of farm machinery and farmers income is negatively correlated. The farmers' income is positively correlated with national agricultural financial expenditure, investment in fixed assets in rural collective units, individual investment in fixed assets of rural residents, the effective irrigated area, and fertilizer application.