Farm Financial Performance of Kentucky Farms
This study examines farm financial performance of Kentucky farms using Kentucky Farm Business Management data from 1998-2010. Logit models are used to estimate the likelihood of farm characteristics affecting whether financial ratios fall into critical zones or not. The results show that large farms...
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ndltd-uky.edu-oai-uknowledge.uky.edu-agecon_etds-10162015-04-11T05:06:26Z Farm Financial Performance of Kentucky Farms Dunaway, Tarrah M This study examines farm financial performance of Kentucky farms using Kentucky Farm Business Management data from 1998-2010. Logit models are used to estimate the likelihood of farm characteristics affecting whether financial ratios fall into critical zones or not. The results show that large farms in terms of total gross returns and total assets are less likely to experience repayment capacity problems. Total gross returns significantly affect all five financial measures. These findings will help farmers and lenders understand what factors influence farm financial performance. Profitability migration is tested to see if the migration probabilities differ across business cycles. Migration drift is also tested to determine if the Markov property of independence is violated. Results show substantial retention in return on equity (ROE) performance over time, and a tendency for trend-reversal if ROE changes occur. Results are compared to previous literature using ARMS data and Illinois FBFM. 2013-01-01T08:00:00Z text application/pdf http://uknowledge.uky.edu/agecon_etds/13 http://uknowledge.uky.edu/cgi/viewcontent.cgi?article=1016&context=agecon_etds Theses and Dissertations--Agricultural Economics UKnowledge Financial performance Financial stress Profitability migration Business cycle Path dependence Finance and Financial Management |
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Financial performance Financial stress Profitability migration Business cycle Path dependence Finance and Financial Management |
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Financial performance Financial stress Profitability migration Business cycle Path dependence Finance and Financial Management Dunaway, Tarrah M Farm Financial Performance of Kentucky Farms |
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This study examines farm financial performance of Kentucky farms using Kentucky Farm Business Management data from 1998-2010. Logit models are used to estimate the likelihood of farm characteristics affecting whether financial ratios fall into critical zones or not. The results show that large farms in terms of total gross returns and total assets are less likely to experience repayment capacity problems. Total gross returns significantly affect all five financial measures. These findings will help farmers and lenders understand what factors influence farm financial performance. Profitability migration is tested to see if the migration probabilities differ across business cycles. Migration drift is also tested to determine if the Markov property of independence is violated. Results show substantial retention in return on equity (ROE) performance over time, and a tendency for trend-reversal if ROE changes occur. Results are compared to previous literature using ARMS data and Illinois FBFM. |
author |
Dunaway, Tarrah M |
author_facet |
Dunaway, Tarrah M |
author_sort |
Dunaway, Tarrah M |
title |
Farm Financial Performance of Kentucky Farms |
title_short |
Farm Financial Performance of Kentucky Farms |
title_full |
Farm Financial Performance of Kentucky Farms |
title_fullStr |
Farm Financial Performance of Kentucky Farms |
title_full_unstemmed |
Farm Financial Performance of Kentucky Farms |
title_sort |
farm financial performance of kentucky farms |
publisher |
UKnowledge |
publishDate |
2013 |
url |
http://uknowledge.uky.edu/agecon_etds/13 http://uknowledge.uky.edu/cgi/viewcontent.cgi?article=1016&context=agecon_etds |
work_keys_str_mv |
AT dunawaytarrahm farmfinancialperformanceofkentuckyfarms |
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1716801074582519808 |