The effects of financial structure on the profitability of Illinois agriculture

Kern, Mackenzie A.

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https://hdl.handle.net/2142/24079 Copy

Description

Title

The effects of financial structure on the profitability of Illinois agriculture

Author(s)

Kern, Mackenzie A.

Issue Date

2011-05-25T14:58:07Z

Director of Research (if dissertation) or Advisor (if thesis)

Schnitkey, Gary D.

Department of Study

Agr & Consumer Economics

Discipline

Agr & Consumer Economics

Degree Granting Institution

University of Illinois at Urbana-Champaign

Degree Name

M.S.

Degree Level

Thesis

Keyword(s)

• Agricultural Finance
• Farm Profitability
• Farm Return
• Farm Tenure
• Return to Assets
• Net Farm Income
• Net Farm Income per Acre
• Farm Size

Abstract

Using data from the Illinois Farm Business Farm Management, this study analyzes how financial structure impacts the profitability of grain and livestock farms in Illinois from 1996 to 2009. Various datasets were assembled to sort farms into pure grain farms, and then sub-sample datasets for the periods 1998-2000, 2002-2004, and 2007-2009. After filtering the data with certain criteria, three models were constructed to measure three types of profitability for pure grain farms. These models show there is statistical evidence to suggest that the debt-to-asset ratio, farm size, land tenure, and equipment costs have an impact on explaining the profitability levels of production agricultural entities. The three models are then used to contrast the statistical significance of the specific variables, which are used to derive the profitability measures.

Graduation Semester

2011-05

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http://hdl.handle.net/2142/24079

Copyright and License Information

Copyright 2011 Mackenzie A. Kern

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