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Dairy Farm Management and Long-Term Farm Financial Performance

Published online by Cambridge University Press:  15 September 2016

Brent A. Gloy ,
Jeffrey Hyde  and
Eddy L. LaDue
Brent A. Gloy
Affiliation:
Department of Applied Economics and Management, Cornell University
Jeffrey Hyde
Affiliation:
Department of Agricultural Economics and Rural Sociology, Pennsylvania State University
Eddy L. LaDue
Affiliation:
Agricultural Finance, Cornell University
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Abstract

The financial performance and relationships between several management factors and financial performance are examined in a panel of 107 New York dairy farms. A panel regression model with fixed effects is estimated in an effort to identify management factors that influence profitability. The model is estimated with two-stage least squares to account for endogenous farm size and debt use variables. Production management factors such as farm size, rate of milk production, and milking system had a positive impact on farm profitability. Financial management variables for the type of accounting system used and the debt use were also significantly related to profitability. Unlike the findings of many other studies, measures of human capital did not have a statistically significant impact on profitability.

Keywords

dairy farm managementfinancial managementfixed-effects regression analysis
Type
Articles
Information
Agricultural and Resource Economics Review , Volume 31 , Issue 2 , October 2002 , pp. 233 - 247
Copyright
Copyright © 2002 Northeastern Agricultural and Resource Economics Association 

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