Impacts of Best Management Practices on Farm Financial Performance

A rapidly changing global agribusiness environment creates a challenge for commercially oriented agricultural producers to improve business acumen through strategy development and execution. A best management practice is broadly defined as a practice that is considered to be most effective in improving business performance. This study examined the relationship of financial leverage and management practices with financial performance on a group of Minnesota and Northwest farms. Management practices were classified into seven broad categories of management, namely strategic planning, financial management, networking, marketing, technology adoption, family relationship and human resources management. Using multiple regression analysis on 242 observations, the effects of financial leverage and management practices on revenues and profits were determined. While the relationship of best management practices with profitability is less conclusive, this study concludes statistically significant relationships between management practices and financial performance, measured in terms of revenues. There exist positive and statistically significant returns to business planning, transition management, customer management and family relationship management.

Name thesis:degree_name

Master of Science

Level thesis:degree_level

masters

Discipline thesis:degree_discipline

Agricultural and Applied Economics

Department dc:contributor.department

Agricultural and Applied Economics

Grantor dc:publisher

Virginia Tech

Year dc:date.issued

2004

Author dc:creator

• Victoria, Vanessa Francesca Villanueva

Chair dc:contributor.committeechair

• Kohl, David M.

Committee members dc:contributor.committeemember

• Reaves, Dixie Watts
• McGilliard, Michael L.
• Morris, Alicia M.
• Hilmer, Christiana E.
• White, Alex A.

• farm financial performance
• best management practice

Statement dc:rights

• In Copyright

Licence dc:rights.uri

• http://rightsstatements.org/vocab/InC/1.0/

Dc Identifier Other

etd-12162004-115546

OAI identifier oai:identifier

oai:vtechworks.lib.vt.edu:10919/36192