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How training and innovation link to farm performance: a structural equation analysis

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  • Vilaphonh Xayavong
  • Ross Kingwell
  • Nazrul Islam

Abstract

type="main" xml:id="ajar12116-abs-0001"> The complexity of modern farm management places great demands on the skill, knowledge and capability of farm managers and their families. Keeping abreast of emerging technologies and innovations that can affect each key farm enterprise, and knowing how best to marshal the resources required for profitable farm production, are key tasks of farm management. This study draws on a longitudinal data set of 240 broadacre farmers to compare and analyse their farm performance over a decade. Using structural equation modelling, we examine relationships between the farm family's involvement in training, their human capital, their use of various innovations and ultimately the linkages of these factors to farm financial and productivity performance. Several statistically significant inter-relationships are found, and some factors are shown to have significant positive links to farm performance. We find that training undertaken by the farm family, the farm family's human capital and their use of innovations, particularly key cropping innovations, have significant beneficial impacts on farm performance. The farmer's skills in time and organisational management, their engagement in business planning and the unique environmental characteristics of the farm also significantly and positively influence farm performance.

Suggested Citation

  • Vilaphonh Xayavong & Ross Kingwell & Nazrul Islam, 2016. "How training and innovation link to farm performance: a structural equation analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 60(2), pages 227-242, April.
    • Handle: RePEc:bla:ajarec:v:60:y:2016:i:2:p:227-242
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    File URL: http://hdl.handle.net/10.1111/ajar.2016.60.issue-2
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    Cited by:

    1. Lili Chen & Jiquan Peng & Yibei Zhang, 2022. "Research on the Impact of Rural Land Transfer on Non-Farm Employment of Farm Households: Evidence from Hubei Province, China," IJERPH, MDPI, vol. 19(23), pages 1-19, November.
    2. Muhammad Masood Azeem & Syed Fazal‐e‐Hasan & Leopoldo Gutiérrez & Derek Baker, 2022. "Does functional diversity in interfirm collaborations lead to innovation diversity? Firm‐level evidence from the Australian food industry," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 66(3), pages 612-637, July.

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