Factors Contributing to Earnings Success of Cash Grain Farms

Abstract The objective of this study was to identify factors which contribute to the earnings' success of cash grain farms in the United States. The study analyzes three measures of success including net farm income per dollar of asset, operators' returns to labor and management, and operators' management income. Logit regression analysis shows that controlling variable costs, ownership, management ability, technology adoption, and diversification are important factors that influence success.

[1]  Stuart D. Frank,et al.  A Target Motad Approach to Marketing Strategy Selection for Soybeans , 1987 .

[2]  Virginia L. Loftus.  Financial Characteristics of U.S. Community College Systems during Fiscal Years 1977 and 1980. , 1982 .

[3]  H. Theil.  On the Estimation of Relationships Involving Qualitative Variables , 1970, American Journal of Sociology.

[4]  Robert A. Pearse.  A study of relationships used in farm record analysis , 1966 .

[5]  E. Melichar.  Capital Gains versus Current Income in the Farming Sector , 1979 .

[6]  D. H. Freeman.  Statistical Decomposition Analysis , 1974 .

[7]  S. Sonka,et al.  Farm Size, Tenure, and Economic Efficiency in a Sample of Illinois Grain Farms , 1982 .

[8]  W. Huffman.  Farm and off-farm work decisions: the role of human capital. , 1980 .

[9]  Subal C. Kumbhakar,et al.  AN ANALYSIS OF TECHNICAL, ALLOCATIVE, AND SCALE INEFFICIENCY: THE CASE OF ECUADORIAN DAIRY FARMS , 1989 .

[10]  O.,et al.  Expected Profit and Farm Characteristics , 1988 .

[11]  Jan Kmenta,et al.  Elements of econometrics , 1988 .

[12]  G. Becker,et al.  Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, Third Edition , 1993 .

[13]  Rural Economy Division..  Farmers' Use of Marketing and Production Contracts , 1996 .

[14]  Mir B. Ali,et al.  Performance Factors and Management Practices Related to Earnings of East Central North Dakota Crop Farms , 1987 .

[15]  Jon A. Brandt,et al.  Combining price forecasting with hedging of hogs: An evaluation using alternative measures of risk , 1985 .

[16]  W. Simpson,et al.  The Off-Farm Work Behavior of Farm Operators , 1983 .

[17]  Anthony Joseph,et al.  The Financial Condition of Agriculture. An Income Analysis. , 1986 .

[18]  D. Rubinfeld,et al.  Econometric models and economic forecasts , 2002 .

[19]  R. Myers,et al.  Why Do Farmers Forward Contract In Factor Markets? , 1992, Journal of Agricultural and Applied Economics.

[20]  M. Boehlje,et al.  Risk management in agriculture , 1977 .

[21]  P. Balestra.  Statistical decomposition analysis with applications in the social and administrative sciences : Henri Theil, studies in mathematical and managerial economics, vol. 14 (North-Holland, Amsterdam, 1972) xvi+337 pp., U.S. $22.50 , 1975 .

[22]  D. Newbery,et al.  The theory of commodity price stabilization , 1981 .

[23]  P. Samuelson.  General Proof that Diversification Pays , 1967, Journal of Financial and Quantitative Analysis.

[24]  Brian H. Hurd,et al.  Yield Response and Production Risk: An Analysis of Integrated Pest Management in Cotton , 1994 .

[25]  H. Demsetz,et al.  Production, Information Costs, and Economic Organization , 1975, IEEE Engineering Management Review.

[26]  J. Berkson.  Application of the Logistic Function to Bio-Assay , 1944 .

[27]  L. Tauer,et al.  SUCCESSFUL DAIRY FARM MANAGEMENT STRATEGIES INDENTIFIED BY STOCHASTIC DOMINANCE ANALYSES OF FARM RECORDS , 1986 .

[28]  Daniel A. Sumner,et al.  An Econometric Analysis of the Effects of Human Capital on Size and Growth among Dairy Farms , 1987 .

[29]  Steven T. Sonka,et al.  Managerial Performance and Income Variability for a Sample of Illinois Cash Grain Producers , 1986 .

[30]  David N. Laband,et al.  Occupational Inheritance in Agriculture , 1983 .

[31]  David Zilberman,et al.  Computer Use in Agriculture: Evidence from Tulare County, California , 1988 .

[32]  D. Lins,et al.  Cash versus accrual measures of farm income , 1986 .

[33]  R. Schreyer,et al.  THE DEPARTMENT OF AGRICULTURE. , 1901, Science.

[34]  Donald A. Anderson,et al.  On Measuring Economic Diversification , 1975 .

[35]  B. Brorsen,et al.  Factors Affecting Farmers' Hedging Decisions , 1988 .

[36]  M. Ahearn,et al.  Estimating the Opportunity Cost of Unpaid Farm Labor for U.S. Farm Operators , 1996 .

[37]  K. Anaman,et al.  Importance, Causes, and Management Responses to Farm Risks: Evidence From Florida and Alabama , 1985, Journal of Agricultural and Applied Economics.

[38]  Kimberly L. Haden,et al.  Factors Which Contribute to the Financial Performance of Selected Tennessee Dairies , 1989, Journal of Agricultural and Applied Economics.

[39]  D. Fraser,et al.  Risk Management in Primary Agricultural Production: Methods, Distribution, Rewards, and Structural Implications , 1976 .

[40]  Donald A. Anderson,et al.  "On Measuring Economic Diversification": Reply , 1978 .

[41]  J. Shonkwiler,et al.  The Effect of Managerial Ability on Farm Financial Success , 1994, Agricultural and Resource Economics Review.