Joint measurement of farm size and farm performance

A confirmatory factor analysis

Joleen C. Hadrich, Frayne Olson

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

Purpose-The purpose of this paper is to determine if a single dominant measure defines farm size and farm performance consistently over a ten-year time period, or if alternative measures are needed. The paper also seeks to determine the correlation between farm size and farm performance and how this correlation may change over time. Design/methodology/approach-A confirmatory factor analysis was used to test the relative strength of farm size and performance indicator variables and estimate the relationship between farm size and performance latent variables. Data were collected from the North Dakota Farm and Ranch Business Management Association (NDFRBA) Annual Summaries for 2000-2009. Findings-Results demonstrated that a single indicator, such as acres or rate of return on assets, may not capture the array of farm size and farm performance concepts and multiple indicators should be used to jointly determine farm size and farm performance measures. Results also found a sequential decrease in correlation between farm size and performance for seven of the ten years. Originality/value-This paper addresses the issue regarding multiple measures for farm size and farm performance which helps provide the framework to begin developing a systematic classification of farms for use in strategic farm planning and guide future government policies, federal farm programs, and environmental regulations.

Original languageEnglish (US)
Pages (from-to)295-309
Number of pages15
JournalAgricultural Finance Review
Volume71
Issue number3
DOIs
StatePublished - Jan 1 2011

Fingerprint

farm size
Statistical Factor Analysis
Joints
farms
farm planning
farm typology
farm programs
business management
environmental law
factor analysis
Farms
Farm
Confirmatory factor analysis
Farm size
ranching
assets
Federal Government

Keywords

  • Agriculture
  • Farm performance
  • Farm size
  • Farms
  • Management
  • Performance measures
  • United States of America

Cite this

Joint measurement of farm size and farm performance : A confirmatory factor analysis. / Hadrich, Joleen C.; Olson, Frayne.

In: Agricultural Finance Review, Vol. 71, No. 3, 01.01.2011, p. 295-309.

Research output: Contribution to journalArticle

@article{dd75af2c1d1d46918653855dd77703a1,
title = "Joint measurement of farm size and farm performance: A confirmatory factor analysis",
abstract = "Purpose-The purpose of this paper is to determine if a single dominant measure defines farm size and farm performance consistently over a ten-year time period, or if alternative measures are needed. The paper also seeks to determine the correlation between farm size and farm performance and how this correlation may change over time. Design/methodology/approach-A confirmatory factor analysis was used to test the relative strength of farm size and performance indicator variables and estimate the relationship between farm size and performance latent variables. Data were collected from the North Dakota Farm and Ranch Business Management Association (NDFRBA) Annual Summaries for 2000-2009. Findings-Results demonstrated that a single indicator, such as acres or rate of return on assets, may not capture the array of farm size and farm performance concepts and multiple indicators should be used to jointly determine farm size and farm performance measures. Results also found a sequential decrease in correlation between farm size and performance for seven of the ten years. Originality/value-This paper addresses the issue regarding multiple measures for farm size and farm performance which helps provide the framework to begin developing a systematic classification of farms for use in strategic farm planning and guide future government policies, federal farm programs, and environmental regulations.",
keywords = "Agriculture, Farm performance, Farm size, Farms, Management, Performance measures, United States of America",
author = "Hadrich, {Joleen C.} and Frayne Olson",
year = "2011",
month = "1",
day = "1",
doi = "10.1108/00021461111177585",
language = "English (US)",
volume = "71",
pages = "295--309",
journal = "Agricultural Finance Review",
issn = "0002-1466",
publisher = "Emerald Group Publishing Ltd.",
number = "3",

}

TY - JOUR

T1 - Joint measurement of farm size and farm performance

T2 - A confirmatory factor analysis

AU - Hadrich, Joleen C.

AU - Olson, Frayne

PY - 2011/1/1

Y1 - 2011/1/1

N2 - Purpose-The purpose of this paper is to determine if a single dominant measure defines farm size and farm performance consistently over a ten-year time period, or if alternative measures are needed. The paper also seeks to determine the correlation between farm size and farm performance and how this correlation may change over time. Design/methodology/approach-A confirmatory factor analysis was used to test the relative strength of farm size and performance indicator variables and estimate the relationship between farm size and performance latent variables. Data were collected from the North Dakota Farm and Ranch Business Management Association (NDFRBA) Annual Summaries for 2000-2009. Findings-Results demonstrated that a single indicator, such as acres or rate of return on assets, may not capture the array of farm size and farm performance concepts and multiple indicators should be used to jointly determine farm size and farm performance measures. Results also found a sequential decrease in correlation between farm size and performance for seven of the ten years. Originality/value-This paper addresses the issue regarding multiple measures for farm size and farm performance which helps provide the framework to begin developing a systematic classification of farms for use in strategic farm planning and guide future government policies, federal farm programs, and environmental regulations.

AB - Purpose-The purpose of this paper is to determine if a single dominant measure defines farm size and farm performance consistently over a ten-year time period, or if alternative measures are needed. The paper also seeks to determine the correlation between farm size and farm performance and how this correlation may change over time. Design/methodology/approach-A confirmatory factor analysis was used to test the relative strength of farm size and performance indicator variables and estimate the relationship between farm size and performance latent variables. Data were collected from the North Dakota Farm and Ranch Business Management Association (NDFRBA) Annual Summaries for 2000-2009. Findings-Results demonstrated that a single indicator, such as acres or rate of return on assets, may not capture the array of farm size and farm performance concepts and multiple indicators should be used to jointly determine farm size and farm performance measures. Results also found a sequential decrease in correlation between farm size and performance for seven of the ten years. Originality/value-This paper addresses the issue regarding multiple measures for farm size and farm performance which helps provide the framework to begin developing a systematic classification of farms for use in strategic farm planning and guide future government policies, federal farm programs, and environmental regulations.

KW - Agriculture

KW - Farm performance

KW - Farm size

KW - Farms

KW - Management

KW - Performance measures

KW - United States of America

UR - http://www.scopus.com/inward/record.url?scp=84946720457&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84946720457&partnerID=8YFLogxK

U2 - 10.1108/00021461111177585

DO - 10.1108/00021461111177585

M3 - Article

VL - 71

SP - 295

EP - 309

JO - Agricultural Finance Review

JF - Agricultural Finance Review

SN - 0002-1466

IS - 3

ER -