IDEAS home Printed from https://ideas.repec.org/p/ags/aaea11/102116.html
   My bibliography  Save this paper

Revealing an Equitable Income Allocation among Dairy Farm Partnerships

Author

Listed:
  • Dressler, Jonathan B.
  • Tauer, Loren W.

Abstract

We formulate a method to determine an equitable division of dairy farm partnership income when partners provide unequal amounts of capital, labor, and management and empirically estimate this relationship. New York dairy farm financial data are used within fixed effects and random coefficient panel regression models to reveal a systematic division of dairy farm partnership income among operators’ labor, capital, and management while controlling for heterogeneity arising from differing herd size. Results indicate that controlling for time and heterogeneity across farms due to herd size are important factors when dividing net farm income among unpaid factors of production. Empirical estimates of allocating dairy farm partnership income to equity, operators’ labor, and management are presented.

Suggested Citation

  • Dressler, Jonathan B. & Tauer, Loren W., 2011. "Revealing an Equitable Income Allocation among Dairy Farm Partnerships," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 102116, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea11:102116
    DOI: 10.22004/ag.econ.102116
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/102116/files/Revealing%20an%20Equitable%20Income%20Allocation%20among%20Dairy%20Farm%20Partnerships.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.102116?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Gloy, Brent A. & Hyde, Jeffrey & LaDue, Eddy L., 2002. "Dairy Farm Management and Long-Term Farm Financial Performance," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 31(2), pages 1-15, October.
    2. Swamy, P A V B, 1970. "Efficient Inference in a Random Coefficient Regression Model," Econometrica, Econometric Society, vol. 38(2), pages 311-323, March.
    3. Knoblauch, Wayne A. & Putnam, Linda D. & Karszes, Jason & Anderson, Jessica, 2009. "Business Summary New York State 2008," Research Bulletins 121572, Cornell University, Department of Applied Economics and Management.
    4. Gloy, Brent A. & Hyde, Jeffrey & LaDue, Eddy L., 2002. "Dairy Farm Management and Long-Term Farm Financial Performance," Agricultural and Resource Economics Review, Cambridge University Press, vol. 31(2), pages 233-247, October.
    5. Knoblauch, Wayne A. & Putnam, Linda D., 2008. "Dairy Farm Business Summary, New York Dairy Farm Renters, 2007," EB Series 121812, Cornell University, Department of Applied Economics and Management.
    6. Knoblauch, Wayne A. & Putnam, Linda D., 2009. "Dairy Farm Business Summary, New York Dairy Farm Renters, 2008," EB Series 121775, Cornell University, Department of Applied Economics and Management.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dressler, Jonathan B. & Tauer, Loren W., 2012. "An Estimate of Socioemotional Wealth in the Family Business," Working Papers 128814, Cornell University, Department of Applied Economics and Management.
    2. Lai, John & Olynk Widmar, Nicole J. & Gunderson, Michael A. & Widmar, David A. & Ortega, David L., 2018. "Prioritization of farm success factors by commercial farm managers," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 21(6), July.
    3. Łukasz Kryszak & Marta Guth & Bazyli Czyżewski, 2021. "Determinants of farm profitability in the EU regions. Does farm size matter?," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 67(3), pages 90-100.
    4. Yeager, Elizabeth & Langemeier, Michael, 2009. "Measuring Sustained Competitive Advantage for a Sample of Kansas Farms," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2009, pages 1-12.
    5. Rodica Chetroiu & Ana Elena Cișmileanu & Elena Cofas & Ionut Laurentiu Petre & Steliana Rodino & Vili Dragomir & Ancuța Marin & Petruța Antoneta Turek-Rahoveanu, 2022. "Assessment of the Relations for Determining the Profitability of Dairy Farms, A Premise of Their Economic Sustainability," Sustainability, MDPI, vol. 14(12), pages 1-17, June.
    6. du Toit, J.P. & Ortmann, Gerald F. & Ramroop, S., 2010. "Factors influencing the long-term competitiveness of commercial milk producers: evidence from panel data in East Griqualand, South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 49(1), pages 1-22, March.
    7. Wheeler, Sarah Ann & Zuo, Alec & Bjornlund, Henning, 2014. "Investigating the delayed on-farm consequences of selling water entitlements in the Murray-Darling Basin," Agricultural Water Management, Elsevier, vol. 145(C), pages 72-82.
    8. Kuster, Christian & Álvarez, Jorge & Lezcano, Mikaela & Álvarez-Vaz, Ramón Dr., 2022. "Desempeño Económico De Las Empresas Agropecuarias Uruguayas: Estudio Sobre Su Evolución A Través De La Técnica De Clústers Longitudinales A Partir De Datos Contables (Economic Performance Of Uruguayan," OSF Preprints p8zk9, Center for Open Science.
    9. McDonald, Roberta & Pierce, Karina & Fealy, Reamonn & Horan, Brendan, 2013. "PR - Characteristics, Intentions And Expectations Of New Entrant Dairy Farmers Entering The Irish Dairy Industry Through The New Entrant Scheme," 19th Congress, Warsaw, Poland, 2013 345713, International Farm Management Association.
    10. Micheels, Eric T. & Gow, Hamish R., 2011. "Market orientation and firm performance across value disciplines in the Illinois beef sector," International Journal of Agricultural Management, Institute of Agricultural Management, vol. 1(2), pages 1-11.
    11. Schulz, Lee L. & Hadrich, Joleen C., 2014. "Feeding Practices and Input Cost Performance in U.S. Hog Operations: The Case of Split-Sex and Phase Feeding," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 169983, Agricultural and Applied Economics Association.
    12. Gloy, Brent A. & LaDue, Eddy L., 2002. "Financial Management Practices and Farm Profitability," 2002 Regional Committee NC-221, October 7-8, 2002, Denver, Colorado 132369, Regional Research Committee NC-1014: Agricultural and Rural Finance Markets in Transition.
    13. Lajos Barath & Raushan Bokusheva & Imre Ferto, 2016. "Studying Farm Insurance Demand under Financial Constraints," CERS-IE WORKING PAPERS 1625, Institute of Economics, Centre for Economic and Regional Studies.
    14. Peter Howley & Emma Dillon, 2012. "Factors affecting the level of farm indebtedness: the role of farming attitudes," Working Papers 1201, Rural Economy and Development Programme,Teagasc.
    15. Maloney, Thomas R. & Bills, Nelson L., 2011. "Survey of New York Dairy Farm Employers 2009," Research Bulletins 121569, Cornell University, Department of Applied Economics and Management.
    16. Bigge, Holly M. & Langemeier, Michael R., 2004. "Relative Profitability and Risk of Kansas Farms and S&P 500," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2004, pages 1-7.
    17. Adhikari, Arun & Mishra, Ashok K. & Chintawar, Sachin, 2009. "Adoption of Technology and Its Impact on Profitability of Young and Beginning Farmers: A Quantile Regression Approach," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46830, Southern Agricultural Economics Association.
    18. Pölling, Bernd & Sroka, Wojciech & Mergenthaler, Marcus, 2017. "Success of urban farming’s city-adjustments and business models—Findings from a survey among farmers in Ruhr Metropolis, Germany," Land Use Policy, Elsevier, vol. 69(C), pages 372-385.
    19. Jeffrey Hyde & Lisa Holden & Richard Stup, 2008. "The Effect of Human Resource Management Practices on Farm Profitability: An Initial Assessment," Economics Bulletin, AccessEcon, vol. 17(12), pages 1-10.
    20. Jonathan Walsh & Robert Parsons & Qingbin Wang & David Conner, 2020. "What Makes an Organic Dairy Farm Profitable in the United States? Evidence from 10 Years of Farm Level Data in Vermont," Agriculture, MDPI, vol. 10(1), pages 1-13, January.

    More about this item

    Keywords

    Agricultural Finance; Farm Management;

    JEL classification:

    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea11:102116. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.