IDEAS home Printed from https://ideas.repec.org/a/ags/sojoae/30294.html
   My bibliography  Save this article

Cow-Calf Producers' Perceived Profit Maximization Objective: A Logit Analysis

Author

Listed:
  • Young, Katherine D.
  • Shumway, C. Richard

Abstract

A logistic regression (logit) model was developed to examine how socioeconomic characteristics of cow-calf producers influenced their perceptions of themselves as profit maximizers. Amount of pasture acreage, percent of income earned from the cow-calf operation, and desire to increase net worth and efficiently use labor significantly increased the producer's probability of claiming to be in the business primarily to maximize profits. Some sociological reasons for owning cattle significantly reduced the probability of the producer claiming to be a profit maximizer while others significantly increased the probability.

Suggested Citation

  • Young, Katherine D. & Shumway, C. Richard, 1991. "Cow-Calf Producers' Perceived Profit Maximization Objective: A Logit Analysis," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 23(01), pages 1-8, July.
  • Handle: RePEc:ags:sojoae:30294
    DOI: 10.22004/ag.econ.30294
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/30294/files/23010129.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.30294?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Oral Capps & Randall A. Kramer, 1985. "Analysis of Food Stamp Participation Using Qualitative Choice Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(1), pages 49-59.
    2. Arthur H. Smith & William E. Martin, 1972. "Socioeconomic Behavior of Cattle Ranchers, with Implications for Rural Community Development in the West," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 54(2), pages 217-225.
    3. Glover, Michael K. & Conner, J. Richard, 1989. "A Methodology for Optimal Range Forage Allocations to Livestock and Wildlife Enterprises," Current Issues in Rangeland Resource Economics: Symposium Proceedings (1989) 314809, Western Regional Coordinating Committee on Rangeland Economics: WCC-55.
    4. Linda K. Lee & William H. Stewart, 1983. "Landownership and the Adoption of Minimum Tillage," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(2), pages 256-264.
    5. Bagi, Faqir Singh, 1983. "A Logit Model Of Farmers' Decisions About Credit," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 15(2), pages 1-7, December.
    6. Boggess, William G. & Anaman, Kwabena A. & Hanson, Gregory D., 1985. "Importance, Causes, and Management Responses to Farm Risks: Evidence From Florida and Alabama," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 17(2), pages 105-116, December.
    7. Bagi, Faqir Singh, 1983. "A Logit Model of Farmers' Decisions About Credit," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 15(2), pages 13-19, December.
    8. Musser, Wesley N. & Martin, Neil R. & Wise, James O., 1975. "The Beef Cow-Calf Enterprise in the Georgia Piedmont: A Case Study in Conspicuous Production," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 7(1), pages 89-95, July.
    9. Amemiya, Takeshi, 1981. "Qualitative Response Models: A Survey," Journal of Economic Literature, American Economic Association, vol. 19(4), pages 1483-1536, December.
    10. Boggess, William G. & Anaman, Kwabena A. & Hanson, Gregory D., 1985. "Importance, Causes, And Management Responses To Farm Risks: Evidence From Florida And Alabama," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 17(2), pages 1-12, December.
    11. Capps, Oral, Jr. & Cheng, Hsiang-Tai, 1986. "The Missing Income Problem In The Analyses Of Engel Functions," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 11(01), pages 1-9, July.
    12. William Lin & G. W. Dean & C. V. Moore, 1974. "An Empirical Test of Utility vs. Profit Maximization in Agricultural Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(3), pages 497-508.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Popp, Michael P. & Faminow, Merle D. & Parsch, Lucas D., 1998. "Adoption Of Backgrounding On Cow-Calf Farms," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20800, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Boaitey, Albert & Goddard, Ellen & Mohapatra, Sandeep & Hailu, Getu, 2014. "Cow-Calf Producer Risk Preference Impacts On Willingness To Pay For Sustainable Breeding Practices," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170231, Agricultural and Applied Economics Association.
    3. Popp, Michael P. & Faminow, Merle D. & Parsch, Lucas D., 1999. "Factors Affecting The Adoption Of Value-Added Production On Cow-Calf Farms," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 31(01), pages 1-12, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Knight, Thomas O. & Lovell, Ashley C. & Rister, M. Edward & Coble, Keith H., 1989. "An Analysis of Lenders' Influence on Agricultural Producers' Risk Management Decisions," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 21(2), pages 21-33, December.
    2. Perry, Gregory M. & McCarl, Bruce A. & Rister, M. Edward, 1988. "Modelling Farm Program-Crop Mix Decisions Under Risk," Regional Research Projects > 1988: S-180 Annual Meeting, March 20-23, 1988, Savannah, Georgia 272783, Regional Research Projects > S-180: An Economic Analysis of Risk Management Strategies for Agricultural Production Firms.
    3. Boyer, Christopher N. & Larson, James A. & Roberts, Roland K. & McClure, Angela T. & Tyler, Donald D., 2014. "The impact of field size and energy cost on the profitability of supplemental corn irrigation," Agricultural Systems, Elsevier, vol. 127(C), pages 61-69.
    4. Beal, Diana J., 1996. "Emerging Issues in Risk Management in Farm Firms," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 64(03), pages 1-12, December.
    5. Garcia, Philip & Hudson, Michael A. & Waller, Mark L., 1988. "The Pricing Efficiency of Agricultural Futures Markets: An Analysis of Previous Research Results," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 20(1), pages 119-130, July.
    6. Manuela Larcher & Martin Schönhart & Erwin Schmid, 2016. "Risikobewertung und Risikomanagement landwirtschaftlicher BetriebsleiterInnen in Österreich – deskriptive Befragungsergebnisse 2015," Working Papers 592016, University of Natural Resources and Life Sciences, Vienna, Department of Economics and Social Sciences, Institute for Sustainable Economic Development.
    7. Meiring, J. A. & Oosthuizen, L. K., 1995. "Risiko-Bronne En Gepaardgaande Bestuursoptrede: Persepsies Van Besproeiingsboere Benede Die P.K. Le Rouxdam," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 34(01), March.
    8. Tanvir Ahmed & Bashir Ahmad, 2014. "Burning of Crop Residue and its Potential for Electricity Generation," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 53(3), pages 275-292.
    9. repec:zbw:inwedp:592016 is not listed on IDEAS
    10. Boyer, Christopher N. & Larson, James A. & Roberts, Roland K. & McClure, Angela T. & Tyler, Donald D. & Smith, S. Aaron, 2014. "Probability of Irrigated Corn Being Profitable in a Humid Region," 2014 Annual Meeting, February 1-4, 2014, Dallas, Texas 162470, Southern Agricultural Economics Association.
    11. Maziya, Sikhanyiso Angel, 2019. "The impact of the Europeun Union grant on access to credit and production in smallholder sugarcane agriculture in Siphofaneni, Eswatini," Research Theses 334775, Collaborative Masters Program in Agricultural and Applied Economics.
    12. Waweru, Caroline Waithira & Nyikal, Rose & Busienei, John R, 2017. "An Analysis Of Risk Attitudes And Risk Management Strategies Among Dairy Farmers In Murang’A County, Kenya," Dissertations and Theses 271063, University of Nairobi, Department of Agricultural Economics.
    13. S. Martin & F. McLeay, 1998. "The Diversity of Farmers' Risk Management Strategies in a Deregulated New Zealand Environment," Journal of Agricultural Economics, Wiley Blackwell, vol. 49(2), pages 218-233, June.
    14. Vandeveer, Lonnie R. & Paxton, Kenneth W. & Lavergne, David R., 1989. "Irrigation And Potential Diversification Benefits In Humid Climates," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 21(2), pages 1-8, December.
    15. MacNicol, R. & Ortmann, Gerald F. & Ferrer, Stuart R.D., 2008. "Management decisions on commercial sugarcane farms in KwaZulu-Natal: a focus on choice bracketing behaviour for risk management," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 47(01), pages 1-24, March.
    16. Makus, Larry D. & Guenthner, Joseph F. & Lin, Biing-Hwan, 1992. "Factors Influencing Producer Support For A State Mandatory Seed Law: An Empirical Analysis," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 17(2), pages 1-8, December.
    17. Bortamuly, Alin Borah & Goswami, Kishor, 2015. "Determinants of the adoption of modern technology in the handloom industry in Assam," Technological Forecasting and Social Change, Elsevier, vol. 90(PB), pages 400-409.
    18. Larry D. Makus & Biing-Hwan Lin & John Carlson & Rose Krebill-Prather, 1990. "Factors influencing farm level use of futures and options in commodity marketing," Agribusiness, John Wiley & Sons, Ltd., vol. 6(6), pages 621-631.
    19. Franco, Mary Ann P. & Riethmuller, Paul C. & Brown, Colin G., 1995. "Probit Model of the Factors Affecting the Adoption of Artificial Insemination in the Breeding of Beef Cattle in the Phillippines," 1995 Conference (39th), February 14-16, 1995, Perth, Australia 149094, Australian Agricultural and Resource Economics Society.
    20. Waithira, Waweru Caroline, 2017. "An Analysis Of Risk Attitudes And Risk Management Strategies Among Dairy Farmers In Murang’A County, Kenya," Research Theses 276428, Collaborative Masters Program in Agricultural and Applied Economics.
    21. Bullock, W. I. & Ortmann, G. F. & Levin, J. B., 1994. "Farmer Characteristics, Risk Sources And Managerial Responses To Risk In Vegetable Farming: Evidence From Large- And Small-Scale Commercial Vegetable Farmers In Kwazulu-Natal," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 33(3), September.

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:sojoae:30294. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/saeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.