The Invisible Utility: Non-Monetary Drivers in Agricultural Household Economics
DOI:
https://doi.org/10.31004/riggs.v5i1.7561Keywords:
agricultural household model, invisible utility, non-monetary drivers, farm persistence, rural livelihoodsAbstract
Why do farm households persist in agriculture when monetary returns are often low, uncertain, or inferior to non-farm alternatives? This paper challenges the prevailing income-centered interpretation in agricultural household economics by introducing the concept of invisible utility, referring to non-monetary benefits that are behaviorally consequential yet largely overlooked in conventional models. Drawing on a structured and concept-driven synthesis of recent empirical and theoretical studies, the paper identifies key non-monetary drivers shaping farm household decisions across diverse contexts. The findings show that identity, autonomy, socio-cultural attachment to land, and psychological security are not peripheral influences, but integral components of household utility that interact dynamically with income, risk, and resource constraints. These dimensions are organized into a coherent typology and conceptually integrated into the agricultural household framework, demonstrating that farm persistence can be understood as a rational outcome within a multidimensional utility structure rather than as a consequence of inefficiency or constraint alone. By reframing utility beyond monetary metrics, this study advances agricultural household economics toward a more behaviorally grounded and theoretically complete framework. The paper further highlights methodological implications for incorporating non-monetary dimensions into empirical analysis and calls for more context-sensitive rural development policies that recognize the full spectrum of values underpinning farming livelihoods.
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