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Factors Affecting the Adoption of Value-added Production on Cow-Calf Farms

Published online by Cambridge University Press:  28 April 2015

Michael P. Popp ,
Merle D. Faminow  and
Lucas D. Parsch
Michael P. Popp
Affiliation:
Department of Agricultural Economics and Farm Management, University of Manitoba
Merle D. Faminow
Affiliation:
Department of Agricultural Economics and Farm Management, University of Manitoba
Lucas D. Parsch
Affiliation:
Department of Agricultural Economics and Agribusiness, University of Arkansas
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Abstract

Factors that affect the decision to feed or sell calves at weaning are analyzed for Arkansas cow-calf operators. A discrete choice logit model is used to analyze the adoption of value-added cattle production. Farm size, human capital, perception of risk/returns and enterprise diversification are hypothesized to explain this decision. Regional factors and land quality are also accounted for. Operator perceptions towards risk, profitability and facilities were important. Production control and attention to marketing were also significant, but farm size and scale of cattle production had a minimal impact. Effects of human capital and off-farm labor opportunities need further investigation.

Keywords

backgroundingcow-calf productionproduction control vs. marketingrisk/return relationshiptechnology adoption
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 31 , Issue 1 , April 1999 , pp. 97 - 108
Copyright
Copyright © Southern Agricultural Economics Association 1999

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