University of Illinois Urbana-Champaign

The effects of financial structure on the profitability of Illinois agriculture

Kern, Mackenzie A.

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https://hdl.handle.net/2142/24079

Description

Title
The effects of financial structure on the profitability of Illinois agriculture
Author(s)
Kern, Mackenzie A.
Issue Date
2011-05-25T14:58:07Z
Director of Research (if dissertation) or Advisor (if thesis)
Schnitkey, Gary D.
Department of Study
Agr & Consumer Economics
Discipline
Agr & Consumer Economics
Degree Granting Institution
University of Illinois at Urbana-Champaign
Degree Name
M.S.
Degree Level
Thesis
Keyword(s)
  • Agricultural Finance
  • Farm Profitability
  • Farm Return
  • Farm Tenure
  • Return to Assets
  • Net Farm Income
  • Net Farm Income per Acre
  • Farm Size
Abstract
Using data from the Illinois Farm Business Farm Management, this study analyzes how financial structure impacts the profitability of grain and livestock farms in Illinois from 1996 to 2009. Various datasets were assembled to sort farms into pure grain farms, and then sub-sample datasets for the periods 1998-2000, 2002-2004, and 2007-2009. After filtering the data with certain criteria, three models were constructed to measure three types of profitability for pure grain farms. These models show there is statistical evidence to suggest that the debt-to-asset ratio, farm size, land tenure, and equipment costs have an impact on explaining the profitability levels of production agricultural entities. The three models are then used to contrast the statistical significance of the specific variables, which are used to derive the profitability measures.
Graduation Semester
2011-05
Permalink
http://hdl.handle.net/2142/24079
Copyright and License Information
Copyright 2011 Mackenzie A. Kern

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Dissertations - Agricultural and Consumer Economics
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Graduate Theses and Dissertations at Illinois