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Financial Management Practices and Farm Profitability

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  • Gloy, Brent A.
  • LaDue, Eddy L.

Abstract

The relationship between the adoption of several basic farm financial management practices and financial performance is examined for 137 New York dairy farms. Data were gathered from farm business summary participants to understand the capital acquisition practices, business analysis techniques, and capital investment decision making processes used by these farms. The paper provides estimates regarding the adoption of various financial management practices. The results suggest that the adoption of financial management practices such as using investment analysis techniques significantly impact farm financial performance.

Suggested Citation

  • 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.
    • Handle: RePEc:ags:nc2002:132369
    DOI: 10.22004/ag.econ.132369
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    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. Knoblauch, Wayne A. & Putnam, Linda D. & Karszes, Jason, 2001. "Dairy Farm Management: Business Summary, New York State, 2000," Research Bulletins 122646, Cornell University, Department of Applied Economics and Management.
    3. Haden, Kimberly L. & Johnson, Larry A., 1989. "Factors Which Contribute To The Financial Performance Of Selected Tennessee Dairies," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 21(1), pages 1-8, July.
    4. Knoblauch, Wayne A. & Putnam, Linda D., 2001. "Dairy Farm Business Summary: Eastern New York Renter Summary, 2000," EB Series 122280, Cornell University, Department of Applied Economics and Management.
    5. 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.
    6. Featherstone, Allen M. & Langemeier, Michael R. & Ismet, Mohammad, 1997. "A Nonparametric Analysis of Efficiency for a Sample of Kansas Beef Cow Farms," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 29(1), pages 175-184, July.
    7. Haden, Kimberly L. & Johnson, Larry A., 1989. "Factors Which Contribute to the Financial Performance of Selected Tennessee Dairies," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 21(1), pages 105-112, July.
    8. Steven T. Sonka & Robert H. Hornbaker & Michael A. Hudson, 1989. "Managerial Performance and Income Variability for a Sample of Illinois Cash Grain Producers," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 11(1), pages 37-47.
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    Keywords

    Agricultural Finance; Farm Management;

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