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1 results

  • Defining and Characterizing Approaches to Farm Management

  • William D. McBride, James D. Johnson
  • Journal:
    Journal of Agricultural and Applied Economics / Volume 38 / Issue 1 / April 2006
    Published online by Cambridge University Press:
    28 April 2015, pp. 155-167

  • Exploratory factor analysis was used to identify approaches to farm management based on a list of management questions posed to a sample of U.S. cash-grain farmers. Three approaches were identified by the factor analysis: price negotiation, long-term cost control, and input adjustment. Estimated factor scores regressed against farm and operator characteristics indicate a profile of producers using each approach that is closely related to stage-of-life of the farm operator and farm business. In addition to operator age and planning horizon, operator risk preference and farm organization and location were other important determinants of the approach to management.