WHY DID THE NUMBER OF YOUNG FARM ENTRANTS DECLINE

The influence of demographic and economic factors on the number of young farm entrants is investigated. After controlling for the demographic effect, it is found that higher commodity prices, lower real interest rates, and lower land values are associated with greater entry. Regional effects suggest lower entry in states with better nonfarm opportunities. Demographic factors suggest that the shrinking pool of potential entrants will lead to further decline in farm entry. The decline in farm entry has important implications for the future structure of farming in the United States.