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Defining and Characterizing Approaches to Farm Management

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  • McBride, William D.
  • Johnson, James D.

Abstract

Exploratory factor analysis was used to identify approaches to farm management based on a list of management questions posed to a sample of U.S. cash-grain farmers. Three approaches were identified by the factor analysis: price negotiation, long-term cost control, and input adjustment. Estimated factor scores regressed against farm and operator characteristics indicate a profile of producers using each approach that is closely related to stage-of-life of the farm operator and farm business. In addition to operator age and planning horizon, operator risk preference and farm organization and location were other important determinants of the approach to management.

Suggested Citation

  • McBride, William D. & Johnson, James D., 2006. "Defining and Characterizing Approaches to Farm Management," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 38(1), pages 1-13, April.
    • Handle: RePEc:ags:joaaec:43755
    DOI: 10.22004/ag.econ.43755
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    References listed on IDEAS

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    1. Purdy, Barry M. & Langemeier, Michael R. & Featherstone, Allen M., 1997. "Financial Performance, Risk, And Specialization," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 29(1), pages 1-13, July.
    2. Mishra, Ashok K. & El-Osta, Hisham S. & Johnson, James D., 1999. "Factors Contributing To Earnings Success Of Cash Grain Farms," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 31(3), pages 1-15, December.
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    4. Miller, Alan & Boehlje, Michael & Dobbins, Craig L., 1998. "Positioning The Farm Business," Staff Papers 28647, Purdue University, Department of Agricultural Economics.
    5. Ramsey, Ruslyn & Doye, Damona G. & Ward, Clement E. & McGrann, James M. & Falconer, Lawrence L. & Bevers, Stanley J., 2005. "Factors Affecting Beef Cow-Herd Costs, Production, and Profits," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 37(1), pages 1-9, April.
    6. Nivens, Heather D. & Kastens, Terry L. & Dhuyvetter, Kevin C., 2002. "Payoffs To Farm Management: How Important Is Crop Marketing?," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 34(1), pages 1-12, April.
    7. Kauffman, Jonas B. III & Tauer, Loren W., 1986. "Successful Dairy Farm Management Strategies Indentified By Stochastic Dominance Analyses Of Farm Records," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 15(2), pages 1-10, October.
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    Citations

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    Cited by:

    1. Etumnu, Chinonso & Gray, Allan W., 2020. "A Clustering Approach to Understanding Farmers’ Success Strategies," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 52(3), pages 335-351, August.
    2. Susanna Lahnamäki-Kivelä & Tuomas Kuhmonen, 2022. "How Farmers Conceive and Cope with Megatrends: The Case of Finnish Dairy Farmers," Sustainability, MDPI, vol. 14(4), pages 1-16, February.
    3. Becot, Florence A. & Conner, David S. & Kolodinsky, Jane M. & Mendez, V. Ernesto, 2014. "Measuring the Costs of Production and Pricing on Diversified Farms: Juggling Decisions Amidst Uncertainties," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2014, pages 1-18.
    4. Ringelberg, Josiah & Gunderson, Michael & Widmar, David, 2016. "Strategies and Time Allocation of Large, Commercial Agricultural Producers," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2016, pages 1-20.
    5. Hironori Yagi & Tsuneo Hayashi, 2021. "Machinery utilization and management organization in Japanese rice farms: Comparison of single‐family, multifamily, and community farms," Agribusiness, John Wiley & Sons, Ltd., vol. 37(2), pages 393-408, April.

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    More about this item

    Keywords

    Crop Production/Industries; Farm Management; Labor and Human Capital;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • C40 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - General

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