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A Clustering Approach to Understanding Farmers’ Success Strategies

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  • Etumnu, Chinonso
  • Gray, Allan W.

Abstract

This paper examines the prioritization of management factors by farmers that lead to the success of their farm business. The research also examines the heterogeneity of producer prioritization of different success strategies. Using a hierarchical clustering approach, we found that each farmer group prioritizes either managing costs, managing output prices, managing people, managing production, or managing assets. The results indicate that the farmer groups are heterogeneous in their prioritization of five strategic management factors. These results provide useful insights for farmers, farm input providers, and farm service providers.

Suggested Citation

  • Etumnu, Chinonso & Gray, Allan W., 2020. "A Clustering Approach to Understanding Farmers’ Success Strategies," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 52(3), pages 335-351, August.
  • Handle: RePEc:cup:jagaec:v:52:y:2020:i:3:p:335-351_1
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    References listed on IDEAS

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    1. Lai, John & Olynk Widmar, Nicole J. & Gunderson, Michael A. & Widmar, David A. & Ortega, David L., 2018. "Prioritization of farm success factors by commercial farm managers," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 21(6), July.
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    3. Ringelberg, Josiah & Gunderson, Michael & Widmar, David, 2016. "Strategies and Time Allocation of Large, Commercial Agricultural Producers," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2016, pages 1-20.
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    6. Gloy, Brent A. & Akridge, Jay T., 2000. "Computer And Internet Adoption On Large U.S. Farms," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 3(3), pages 1-16.
    7. Eugenio Brentari & Livia Dancelli & Marica Manisera, 2016. "Clustering ranking data in market segmentation: a case study on the Italian McDonald's customers’ preferences," Journal of Applied Statistics, Taylor & Francis Journals, vol. 43(11), pages 1959-1976, August.
    8. McBride, William D. & Johnson, James D., 2006. "Defining and Characterizing Approaches to Farm Management," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 38(1), pages 1-13, April.
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