IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

Is Farm Management Skill Persistent?

Listed author(s):
  • Li, Xi
  • Paulson, Nicholas
  • Schnitkey, Gary
Registered author(s):

    Agricultural producers operate in a volatile environment, facing a number of sources of risk. A key question is whether farmers who are more highly skilled can better mitigate these risks and consistently earn higher returns than their lower skilled peers. 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. Results suggest that the most skilled managers often generate better financial results. Furthermore, persistence tests show management skills are consistent and predictable.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://purl.umn.edu/212047
    Download Restriction: no

    Paper provided by International Association of Agricultural Economists in its series 2015 Conference, August 9-14, 2015, Milan, Italy with number 212047.

    as
    in new window

    Length:
    Date of creation: 2015
    Handle: RePEc:ags:iaae15:212047
    Contact details of provider: Web page: http://www.iaae-agecon.org/
    Email:


    More information through EDIRC

    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.:

    as
    in new window


    1. Carhart, Mark M, 1997. " On Persistence in Mutual Fund Performance," Journal of Finance, American Finance Association, vol. 52(1), pages 57-82, March.
    2. Purdy, Barry M. & Langemeier, Michael R. & Featherstone, Allen M., 1997. "Financial Performance, Risk, And Specialization," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 29(01), July.
    3. Mishra, Ashok K. & El-Osta, Hisham S. & Johnson, James D., 1999. "Factors Contributing To Earnings Success Of Cash Grain Farms," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 31(03), December.
    4. Hans Andersson & Kent D. Olson, 1996. "On Comparing Farm Record Association Members to the Farm Population," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 18(2), pages 259-264.
    5. Todd H. Kuethe & Brian Briggeman & Nicholas D. Paulson & Ani L. Katchova, 2014. "A comparison of data collected through farm management associations and the Agricultural Resource Management Survey," Agricultural Finance Review, Emerald Group Publishing, vol. 74(4), pages 492-500, October.
    6. Paul N. Ellinger & Vishwanath Tirupattur, 2009. "An Overview of the Linkages of the Global Financial Crisis to Production Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(5), pages 1399-1405.
    7. Nicole M. Aulerich & Scott H. Irwin & Philip Garcia, 2013. "Returns to individual traders in agricultural futures markets: skill or luck?," Applied Economics, Taylor & Francis Journals, vol. 45(25), pages 3650-3666, September.
    8. Nicholas D. Paulson & Bruce J. Sherrick, 2009. "Impacts of the Financial Crisis on Risk Capacity and Exposure in Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(5), pages 1414-1421.
    9. Carpenter, Jennifer N. & Lynch, Anthony W., 1999. "Survivorship bias and attrition effects in measures of performance persistence," Journal of Financial Economics, Elsevier, vol. 54(3), pages 337-374, December.
    10. Fama, Eugene F. & French, Kenneth R., 1993. "Common risk factors in the returns on stocks and bonds," Journal of Financial Economics, Elsevier, vol. 33(1), pages 3-56, February.
    11. Barry K. Goodwin & Allen M. Featherstone & Kimberly Zeuli, 2002. "Producer Experience, Learning by Doing, and Yield Performance," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(3), pages 660-678.
    12. Joao Martines-Filho, 2006. "The Performance of Agricultural Market Advisory Services in Corn and Soybeans," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(1), pages 162-181.
    13. Cole R. Gustafson & Elizabeth Nielsen & Mitchell J. Morehart, 1990. "Comparison of the Financial Results of Record-Keeping and Average Farms in North Dakota," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 12(2), pages 165-172.
    14. Olson, Kent D. & Tvedt, Douglas D., 1987. "On Comparing Farm Management Associations And The Farm Population," Staff Papers 13456, University of Minnesota, Department of Applied Economics.
    15. Allan G. Mueller, 1954. "Comparison of Farm Management Service Farms and a Random Sample of Farms in Western Illinois," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 36(2), pages 285-292.
    16. Grinblatt, Mark & Titman, Sheridan, 1992. " The Persistence of Mutual Fund Performance," Journal of Finance, American Finance Association, vol. 47(5), pages 1977-1984, December.
    17. Elton, Edwin J & Gruber, Martin J & Rentzler, Joel C, 1987. "Professionally Managed, Publicly Traded Commodity Funds," The Journal of Business, University of Chicago Press, vol. 60(2), pages 175-199, April.
    18. Steven T. Sonka & Robert H. Hornbaker & Michael A. Hudson, 1989. "Managerial Performance and Income Variability for a Sample of Illinois Cash Grain Producers," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 11(1), pages 37-47.
    19. Lewis T. Cunningham & B. Wade Brorsen & Kim B. Anderson, 2007. "Cash Marketing Styles and Performance Persistence," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(3), pages 624-636.
    20. Brown, Stephen J, et al, 1992. "Survivorship Bias in Performance Studies," Review of Financial Studies, Society for Financial Studies, vol. 5(4), pages 553-580.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:ags:iaae15:212047. 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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.