ABSTRACT

This chapter examines the long-term implications of the new farm crisis for agriculturally dependent rural areas in the United States and the implications of the loss of alternative numbers of residents for the areas. The social impacts may be among the most costly impacts of the farm financial crisis in rural America. Trade and service centers would clearly be impacted because of the loss of producers, secondary workers, and the dependents of producers and secondary workers. Wholesale trade could decline by nearly $300 million, retail trade by more than $500 million, and services by more than $500 million. Social impacts are the result of changes in other basic socioeconomic factors. The fact that the loss of producers is likely to be accompanied by an accompanying and substantial loss in economic capital and resources is also of social significance. The socioeconomic conditions of rural areas are already disadvantaged relative to other areas in the United States.