FARM PERFORMANCE AND MANAGEMENT STRATEGIES
This article emphasizes the strategic and operations aspects of managing a farm. In this article, farm management performance is analyzed based on yearly Illinois Farm Business Farm Management (FBFM) panel data across 9,831 farms from 1996 through 2014. The alpha scores (or skill estimates) for f...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
International Journal of Food and Agricultural Economics
2018-04-01
|
| Series: | International Journal of Food and Agricultural Economics |
| Subjects: | |
| Online Access: | http://www.foodandagriculturejournal.com/Vol6.No1.pp1.pdf |
| Summary: | This article emphasizes the strategic and operations aspects of managing a farm. In this
article, farm management performance is analyzed based on yearly Illinois Farm Business
Farm Management (FBFM) panel data across 9,831 farms from 1996 through 2014. The
alpha scores (or skill estimates) for farm managers are analyzed to determine if most
profitable farmers possess specific skills or knowledge against adverse events in a volatile
environment. Farms are evaluated under different scenarios of management skill portfolios.
Fundamental farm management basics are discussed in this study, including budgeting,
production planning, financial analysis, financial management, investment analysis, and
control management. We find substantial difference of farm management styles and
performance efficiency in management skill portfolios. We also find evidence of most skilled
farm managers are more efficient on both revenue side and costs side. The approaches used
in this study also allow comparison among farms of different sizes and types. The activities of
top farms can be replicated by poorer performers and the study provide a unique way for
comparing the farm management styles and ability of most skilled farm managers to that of
less skilled ones. The innovative method is framed by comparing business strategies and
performance styles in the following aspects: production and operations planning, land
management and control, and production costs evaluation. Farm managers will want to
consult it as well to improve the effectiveness, objectivity, and success of their decisions. |
|---|---|
| ISSN: | 2147-8988 2147-8988 |