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Using farmer decision-making profiles and managerial capacity as predictors of farm viability in argentinean dairy farms (La Pampa)

Abstract:

The aim of this study was to evaluate the effect of management on the economic viability of the dairy farms in La Pampa (Argentina). Between 2005 and 2007 the owners/managers of 57 dairy farms were interviewed by stratified randomized sampling with proportional assignation. It was analyzed 22 variables related to the decision-making process, farm features and personal aspects of the farmer/manager were analyzed. The farms were divided into viable or unviable regarding their ability to generate profits. A logistic regression model was used to determine variables related to the viability of the farm and its functioning. Results showed that the farm size (OR=1.006), the compilation of farming records (OR=5.928), the use of external information (OR=5.910) and external advisors (OR=5.738) in the farm decision-making were significant predictors of the farm's viability, being particularly relevant the influence of management on the economic yield of the farm.