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Abstract

Producer Attitudes, Assistance, and Time Allocation Affecting Farm Income Rob Holcomb, Kent Olson, Gary Hachfeld, David Bau, Jim Kurtz National Farm Business Management Conference Fargo, ND June 13-17, 2010. Abstract.

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Abstract

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  1. Producer Attitudes, Assistance, and Time Allocation Affecting Farm IncomeRob Holcomb, Kent Olson, Gary Hachfeld, David Bau, Jim KurtzNational Farm Business Management ConferenceFargo, ND June 13-17, 2010

  2. Abstract • Data from SWMFBMA indicates net farm income growing at a faster rate than for all producers. • Surveyed the membership of SWMFBMA • Objective was to identify what the top income group is doing compared to the rest of the producers.

  3. Abstract (continued) • Data was compared to five-year averages for financial and physical data • Farms were divided into two groups depending upon whether the NFI per operator was less than or greater than $100,000 • Student’s T-Test calculation was used to determine statistical significance of survey data across both income groups

  4. Motivations • The observation that the high profit group was pulling away from the low profit group • The ever present interest in why some farm perform better than others

  5. SWMFBMA Net Farm Income 1990-2009

  6. Methods • Surveyed members of SW Minnesota Farm Business Management Association • Comparison of high and low profit groups via calculation of Student’s T-Test utilizing both collected survey data and Net Farm Income per operator

  7. Survey of SWMFBMA members • Mailed to 111 members in June 2008 • Follow-up letter in August 2008 • 79 surveys returned • 73 useable surveys (66%) after excluding: • Farms with less than three years of data from 2003-07 • Incomplete surveys

  8. Descriptive Statistics

  9. Farm Size Statistics

  10. Financial Performance & Position

  11. Financial Efficiency

  12. Other Characteristics

  13. Farm Types

  14. Results

  15. Results • Statistical comparison of survey answers using Student’s T-Test Calculation • Determine statistical significance of differences between income groups

  16. Impacts on NFI per oper. **p<0.05 *p<0.10

  17. Interpretations & Conclusions

  18. Interpretations & Conclusions • Lower income group indicated they received more inheritance than top income group • Top income group is more likely to have purchased their farm from relatives • Top income group indicated they spent more time reading farm management educational material than the low income group

  19. Interpretations & Conclusions • Time spent on marketing was not significantly different between the two groups. • Top income group is more likely to utilize commodity futures and options.

  20. Interpretations & Conclusions • The following survey questions did not reflect any difference between income groups: • Amount of time spent on farm record keeping • Amount of financial help the farm operator received when started farming • Time spent attending educational meetings • Amount changed or updated on the farm in last seven years

  21. Thank you! Questions, Comments

  22. Contact Information Rob Holcomb, EA Extension Educator, Agricultural Business Management University of Minnesota Extension Extension Regional Office, Marshall 1424 E College Drive, Suite 100 Marshall, MN 56258-2087 Email:     holcombr@umn.edu Blog: www.Agbuzz.com Phone:     507-337-2807 Fax:         507-337-2802

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