Labor, or the time of the human agent, is one of the most important inputs in production. Labor services in agriculture are provided: by farm operators/ managers who perform very important allocative, production/marketing decision making and supervisory functions (Schultz 1972; Huf&nan 1985; Huffman 199lb) and frequently engage directly in production; by members of the operator's family or relatives who largely work without direct compensation; and by hired workers. The incomes of farm families and of hired farm workers are determined not only by the amount of labor that they sell but also by the amount of other resources to which they hold income rights. Historically, issues have been raised not only about trends in the functional distribution of income in the United States but also about how well labor and capital markets are functioning to keep returns comparable across sectors and regions.