Financial management practices and farm profitability

Abstract

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractThe adoption of several basic financial management practices is examined for a group of New York dairy farms. The study provides estimates of the extent to which various business analysis and control, investment analysis and decision making, and capital acquisition practices have been adopted. Many practices, such as net present value analysis, are not widely adopted by farmers. The relationship between the adoption of financial management practices and farm profitability is also examined. Results suggest that the adoption of financial management practices, such as using investment analysis techniques, significantly impacts farm financial performance.

The Effect of Market Orientation on Learning, Innovativeness, and Performance in Primary Agriculture

“…The Resource-Based View and Firm Performance Previous studies on farm performance have examined resources in terms of number of acres farmed or animals produced (Purdy et al 1997;Gloy and LaDue 2003) as well as the adoption of new technologies (Kim et al 1992;Kalirajan and Shand 2001;Marra et al 2003). As actors within a supplier dominated industry, agricultural firms often utilize resources that outside firms have developed.…”

“…Previous studies have examined the specific factors that determine performance of agricultural firms. Often, these studies have focused on characteristics of the farm and farm manager, such as farm size (Haden and Johnson 1989;Purdy et al 1997;Langemeier and Jones 2000;Mishra and Morehart 2001;Gloy et al 2002) and the use of financial management practices (Gloy and LaDue 2003;Jackson-Smith et al 2004). While farm size is an important factor to consider, it may be that farm size is a consequence of managerial skill rather than an antecedent to firm performance.…”

Joint measurement of farm size and farm performance: a confirmatory factor analysis

“…NFI captured relative farm size across a diverse group of farms by incorporating both the revenues and expenses of the various farm operations. Past studies have used NFI as a farm performance measure (Katchova, 2010;Gloy and LaDue, 2003), but these studies were evaluating one specific farm type (e.g. dairy farms).…”

Management accounting research on farms: what is known and what needs knowing?

“…This description underlines the general concern in the literature that the practice of MA in FEs is subsumed by the set of traditional practices of book and recordkeeping, costing, comparative analysis, (capital) budgeting and performance measurement (Mishra et al, 1999a;Gloy and LaDue, 2003). Our sample reveals that the research focus on MA practices in FEs has changed over time.…”