Copyright University of Minnesota. All Rights Reserved. Top 20 Project: Producer Tendencies Affecting Net Farm Income Preliminary Findings RME Conference Reno, NV. March-April 2009
Copyright University of Minnesota. All Rights Reserved. Top 20 Project Rationale for research: –Since 2003, SWMFBMA farmers in the high 20 percent net farm income category, have increased net farm income faster than other SWMFBMA farmers. –Want to explore what tendencies might contribute to this difference in net farm income increase.
Copyright University of Minnesota. All Rights Reserved. Farm Financial Data - SWMFBMA
Copyright University of Minnesota. All Rights Reserved. Top 20 Project Research approach: –Utilized mail-out survey –Total surveys sent = 110 –Completed surveys = 79 –Surveys with financial data = 67 –After removal of statistical outliers = 55 –Survey results correlated against 5 years of SWMFBMA financial data.
Copyright University of Minnesota. All Rights Reserved. Top 20 Project Sorted survey data by operation’s net farm income. Sorted into three net farm income categories: ≥ $50k to < $100k - 19 farms ≥ $100k to < $150k - 20 farms ≥ $150k to < $300k - 16 farms
Copyright University of Minnesota. All Rights Reserved. Financial Characteristics
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Management Issues
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Attitudinal Perspectives
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Farm Business Characteristics
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Family Members Interested in Operating Your Farm 14.5%16.1%9.7% 12.9%14.5%12.9% ≥ $50k to < $100k ≥$100k to < $150k ≥$150k to < $300k Yes No
Copyright University of Minnesota. All Rights Reserved. Education & Information
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Information Sources Select from list of six, then pick 1st and 2nd best information source: –Newspapers, magazines, radio/TV, direct mail. –Group discussions/advice: workshops, tours, etc. –Individual discussion with advisor or consultant. –Discussions with people in my personal network such as friends, colleagues, etc. –Books, reports, etc. –Electronic media (Internet, websites, etc.)
Copyright University of Minnesota. All Rights Reserved. Information Sources 1 st choice for best information source: #1: Individual discussion with consultant or advisor - 45% #2: Newspapers, magazines, radio/TV, direct mail - 26% #3: Discussion with people in my personal network - 18%
Copyright University of Minnesota. All Rights Reserved. Information Sources 2nd choice for best information source: #1: Electronic media - 50% #2: Discussion with people in my personal network - 30% #3: Individual discussions with consultant or advisor - 18%
Copyright University of Minnesota. All Rights Reserved. Key Points ► Utilizing & managing assets as efficiently as possible is important. ► Managing debt & expenses is key. ► Utilizing technology, if it improves efficiency, is important. ► Paying attention to records & analysis data and managing accordingly is important.
Copyright University of Minnesota. All Rights Reserved. Key Points ► Seeking out new information & practices that apply and implementing them when possible is important. ► Growing the business when possible is helpful. ► Working at adapting to change and keeping a positive attitude is very beneficial!
Copyright University of Minnesota. All Rights Reserved. Contact Information Gary A. Hachfeld Extension Educator Ag Business Management Extension Regional Office Mankato, MN. Phone:
Copyright University of Minnesota. All Rights Reserved. Comments ? Questions ?