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Is Farm Management Skill Persistent?

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  • Li, Xin
  • Paulson, Nicholas

Abstract

Farm management skills can affect farm managers' performance. In this article, farm management performance is analyzed based on yearly Illinois Farm Business Farm Management (FBFM) panel data across 6,760 farms from 1996 through 2011. Two out-of-sample measures of skill are used to analyze the ability of farm managers that consistently perform well over yearly and longer time horizons. Persistence tests show management skills are consistent and predictable. Results also suggest that the most skilled managers often generate better financial results.

Suggested Citation

  • Li, Xin & Paulson, Nicholas, 2014. "Is Farm Management Skill Persistent?," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170170, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea14:170170
    DOI: 10.22004/ag.econ.170170
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    Cited by:

    1. Griffin, Terry & Ibendahl, Gregg & Stabel, Jayce, 2016. "Kansas Farm Profitability Persistence: Do Top Farms Remain Top Farms?," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 230108, Southern Agricultural Economics Association.
    2. Ibendahl, Gregory, 2016. "Using Solvency Ratios to Predict Future Profitability," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2015, pages 1-7.

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    Keywords

    Agribusiness; Agricultural Finance; Crop Production/Industries; Farm Management; Financial Economics; Production Economics;
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