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June 20, 2016
Financial Management
rtment Of Agricultural Economics Extension Publication 06/20/2016
WRITTEN BY: COOPER MORRIS, ELIZABETH YEAGER, KEVIN DHUYVETTER, GREG REGIER … 1
Management Factors: What is Important, Costs, Yields, Prices, or
Production Practices?
Cooper Morris (cooper.h.morris@gmail.com), Elizabeth Yeager (eyeager@ksu.edu), Kevin Dhuyvetter
(kdhuyvetter@elanco.com), and Greg Regier (gregier@ksu.edu).
Kansas State University Department of Agricultural Economics ‐ June 2016
http://www.agmanager.info/farmmgt/finance/management/MgtFactors05‐14_(Jun16).pdf
This paper analyzes the value and feasibility of farming differently than the local average in Kansas crop
production. It is an update of previous research with the addition of several new variables‐‐workers per acre,
machine costs, and crop input costs‐‐to answer additional questions (Dhuyvetter, Morris, & Kastens, 2011;
Kastens, Dhuyvetter, 2007, 2006, 2005, 2004; Nivens, Kastens, & Dhuyvetter, 2002). Farms are broken down by
their characteristics, practices, and management performances in order to identify sources of superior
performance. Do the number of workers per acre explain differences in farm performance? Do machine costs or
crop input costs, relative to averages, have a larger impact on farms’ relative performances? The degree and
consistency of which farms are different than average is also analyzed. To what degree do farms distinguish their
planting intensity from the local average? By how much do the prices received by some farms deviate from the
average price received in a county? Lastly, how consistently farms achieve different than average costs, yields,
prices, and net incomes is analyzed.
This analysis and previous studies have examined farm characteristics and performances over ten‐year
periods going back to the 1992‐2001 period (Nivens, Kastens, & Dhuyvetter, 2002). Since the first study the
estimated impact of farm size and price management increased steadily. The measured impact in this study
deviates from the increasing trend, but farm size and price management continue to be significantly related to
farm performance.
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