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Top 20 Project: Producer Tendencies Affecting Net Farm Income

Gary Hachfeld

Summary

Over the past three to four years, net farm income among the top 20 percent of farm producer members in the Southwest Minnesota Farm Business Management Association (SWMFBMA) has increased substantially more than the rest of the producer members. The immediate question is what are the farmers in this top 20 percent group doing that might account for the greater increase in net farm income? To address this question, a research survey of all SWMFBMA members was conducted. Survey questions were divided into categories which included producer’s educational background, their management approach to the farm business, their decision-making approach to those management decisions, allocation of their time to various farm tasks such as marketing, their sources of information related to production and marketing, their philosophical approach to farming, and their view of the future of agriculture. Responses to the survey questions were then compared with the producer’s net farm income as well as a host of other financial measures. Results have pointed out several production and management tendencies that vary based upon net farm income. Implications of these findings could be beneficial to other producers trying to increase their net farm income through emulation of the tendencies of the top 20 percent of producers. This presentation will highlight some of the tendencies that affect the net farm income of those top 20 percent of producers.

Details

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