ABSTRACT

This part introduction presents an overview of the key concepts discussed in the subsequent chapters. The part aims to provide some concepts and practical suggestions for improving the estimates of the quantity and cost/value of operator and family labor used in agriculture. It argues that US Department of Agriculture greatly underestimates the hours of farm work as well as the unit cost or value of the hours worked. The part examines in support of the use of opportunity cost of off-farm work as the appropriate value/cost of operator and family labor. It also aims to attempt go beyond the common, indiscriminate practice of using the hired wage rate. Transportation costs can be a factor negating the attractiveness of a higher wage rate. The critical need is to have very detailed information about the tasks performed by unpaid labor to be able to select the appropriate wage.