AGRICULTURAL DIVERSITY AND CASH RECEIPT VARIABILITY FOR INDIVIDUAL STATES

Abstract

Changes in individual states' agricultural production diversity and variance of cash receipts were measured over the 30-year period 1960 through 1989. Diversity was measured using a general index, of which the inverse Herfindahl and the Entropy are special cases. Cash receipt variability was measured using a heteroscedasticity correction process. Although 38 states experienced an increase in cash receipt variability, only 14 states also experienced a decrease in diversification. Thus, it appears that an increase in cash receipt variability was not due to reduction in diversification for most states.