The impact of management skills on farm incomes in Canada
This study assesses the reported farm income crisis in Canada and uses farm financial data to illustrate the importance and impact that management skills and practices have on farm income and net worth. For grain and oilseed farms, large farms produce higher revenues per hectare and achieve economies of scale on operating expenses, interest and depreciation, making them significantly more profitable than smaller or average sized farms. The higher profits associated with large farms are partly returns to good farm management. While farmland investment returns are competitive with stock and bond markets, grain and oilseed farm labour and management returns are not competitive with provincial average wages and salaries. On average, Canadian grain and oilseed farm families have less disposable income to spend today but have considerably more wealth than their non-farm family neighbours. The higher wealth level for farm families makes it increasingly difficult for governments to acknowledge a farm crisis and increase farm subsidies.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Banks, Rob, 2004. "Rural decline and innovation: issues within issues; or what role for AFBM Journal?," AFBM Journal, Australasian Farm Business Management Network, vol. 1.
- Marvin J. Painter, 2000. "Should Saskatchewan Farmland be Part of Your Investment Portfolio?," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 48(1), pages 39-50, 03.
- Malcolm, Bill, 2004. "Farm Management analysis: a core discipline, simple sums, sophisticated thinking," AFBM Journal, Australasian Farm Business Management Network, vol. 1.
- Kemp, David R. & Girdwood, John & Parton, Kevin A. & Charry, Al A., 2004. "Farm Management: rethinking directions?," AFBM Journal, Australasian Farm Business Management Network, vol. 1.
When requesting a correction, please mention this item's handle: RePEc:ags:afbmau:122234. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.