Differences in farmers’ perception of opportunities for farm development

Abstract

This paper empirically identifies differences between dairy farmers in their perception of opportunities for farm development. The construct 'perceived Room for Manoeuvre' (pRfM) is used which is defined as: 'the opportunities perceived as viable in order to obtain a (substantial part of) business income'. A unique case study of 79 dairy farmers operating in a highly comparable socio-material context at the level of the case study allows for an empirical analysis of differences in the pRfM using a mix of quantitative and qualitative methods exploratory research, a questionnaire and in-depth interviews with stakeholders in farm development. Differences in the pRfM will likely affect the early phase of strategic decision making and consequently explain heterogeneity in farm development. Data analysis revealed the following three dimensions of pRfM: perception of the opportunity (1) to diversify; (2) to end production; and (3) to maximise production. These dimensions proved useful to explain heterogeneity in farm development and thus showed the importance of a subjective approach towards opportunity identification in farm development. This paper shows the need to view the farmer as entrepreneurial actor in the process of strategic decision making who interacts with the socio-material context of the farm.

Farmers’ perception of opportunities for farm development

“…Using multiple regression analysis, we studied the contribution of each driver as part of the total model. The dependent variables are the three dimensions of pRfM: ' diversifying' , ' ending' and 'maximising' of production (Methorst et al 2016). As independent variables we used the 22 variables which represent the seven drivers for the pRfM (Table 4.3).…”

“…Using multiple regression analysis the contribution of each of the 22 explanatory variables (the independent variables) was determined as part of the total model. Three multiple regression analyses were performed with as dependent variables the three dimensions of pRfM: ' diversifying' , ' ending' and 'maximising' of production (Methorst et al 2016). The 22 explanatory variables represented the 7 drivers of the analytical framework.…”

“…These four patterns were labelled Milk Max, Milk Balance, Milk Plus and End Milk (Methorst et al 2016):…”

“…The pRfM was tested in the context of family dairy farming operating in a highly similar socio-material context. Significant differences between farmers were found (Methorst et al 2016). The farmers differed in three dimensions (or income strategies) of the pRfM: (1) ' diversifying'; (2) ' ending'; and (3) 'maximising' production.…”

“…We defined the pRfM as 'the opportunities perceived as viable in order to obtain a (substantial part of) business income' (Methorst et al 2016). The label 'perceived Room for Manoeuvre' was chosen as it connects closely to the real life world of the farmer as entrepreneur deliberating about the question: 'what are my opportunities, what is my room for manoeuvre' .…”