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Survival Analysis for the Adjustment Phase Following Investment in Swiss Dairy Sheds

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  • Benedikt Kramer

    (Farm Management Group, Agroscope, CH-8356 Ettenhausen, Switzerland
    Institute of Farm Management, Hohenheim University, D-70593 Stuttgart, Germany)

  • Anke Schorr

    (Farm Management Group, Agroscope, CH-8356 Ettenhausen, Switzerland)

  • Reiner Doluschitz

    (Institute of Farm Management, Hohenheim University, D-70593 Stuttgart, Germany)

  • Markus Lips

    (GUS Group, CH-9000 St. Gallen, Switzerland)

Abstract

We analysed the adjustment phase following a dairy shed investment. On the basis of farm observations from both the Swiss Farm Accountancy Data Network (FADN) and a database of government-supported investments from 2003 through 2014, we focused on the imputed profit, the farm income minus opportunity costs for family labour and family capital. After investment, the analysed farms needed three years to return to the same profit level as that before the investment (median value). A Cox proportional-hazards model (survival analysis) showed that the probability of reattaining the imputed profit increased with equity capital. A reduction of the probability was related to a high imputed profit, a high off-farm income, high expenses for purchased animals and, in particular, a greater use of family labour before the investment. We conclude that the use of family labour after investment should be addressed more thoroughly during the planning process prior to an investment.

Suggested Citation

  • Benedikt Kramer & Anke Schorr & Reiner Doluschitz & Markus Lips, 2019. "Survival Analysis for the Adjustment Phase Following Investment in Swiss Dairy Sheds," Agriculture, MDPI, vol. 9(11), pages 1-8, November.
    • Handle: RePEc:gam:jagris:v:9:y:2019:i:11:p:238-:d:285144
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    References listed on IDEAS

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    1. Benedikt Kramer & Anke Schorr & Reiner Doluschitz & Markus Lips, 2021. "The Role of Neighborhood Effects on Investing Dairy Farms," Economia agro-alimentare, FrancoAngeli Editore, vol. 23(3), pages 1-20.

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