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Cow-Calf Producers' Perceived Profit Maximization Objective: A Logit Analysis

Published online by Cambridge University Press:  08 February 2017

Katherine D. Young  and
C. Richard Shumway
Katherine D. Young
Affiliation:
Clemson University, Agricultural Economics, Texas A&M University)
C. Richard Shumway
Affiliation:
Texas A&M University
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Abstract

A logistic regression (logit) model was developed to examine how socioeconomic characteristics of cow-calf producers influenced their perceptions of themselves as profit maximizers. Amount of pasture acreage, percent of income earned from the cow-calf operation, and desire to increase net worth and efficiently use labor significantly increased the producer's probability of claiming to be in the business primarily to maximize profits. Some sociological reasons for owning cattle significantly reduced the probability of the producer claiming to be a profit maximizer while others significantly increased the probability.

Keywords

logit analysiscow-calfproducer objectives
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 23 , Issue 1 , July 1991 , pp. 129 - 136
Copyright
Copyright © Southern Agricultural Economics Association 1991

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