Evaluating the Impact of Off-Farm Decisions on Federal Government Program Utilization and Financial Success for Missouri's Beginning Farmers
Date of Graduation
Master of Science in Agriculture
College of Agriculture
Farmers and ranchers will have to increase production by approximately 70% by the year 2050 according to the American Farm Bureau Federation (2017). People in the agriculture industry face several challenges from start-up costs to limited land availability (Ahearn, 2011). There are federal and state government programs available to assist with some of these challenges but bring their own hardships as well. This study measures off-farm decisions that affect financial performance and utilization of government programs for Missouri’s farmers and ranchers. Three types of financial performance of Missouri farms are prioritized in this study, liquidity (current ratio), solvency (debt-to-asset ratio), and profitability (rate of return on assets). In addition, government payments received were evaluated as a dependent variable in this study to explore what factors affect the level of payments received by beginning and all Missouri farmers. Using data from the 2019 Agricultural Resource Management Survey (ARMS) for the state of Missouri, several significant results were found. Government payments received and the having an experienced operator displayed better financial performance. Farmers choosing to work off-farm for health benefits, retirement benefits, and income reasons compared to those that did not result in less government payments received. Overall, the results of this study provide valuable information for those involved in the agriculture industry today, tomorrow, and in the future.
beginning farmers and ranchers, Missouri, financial performance, government programs, marginal effect, farmer challenges, off-farm decisions
Agribusiness | Agricultural and Resource Economics | Agricultural Economics | Agriculture | Econometrics | Economic Policy | Environmental Policy | Finance | Labor Economics | Other Public Affairs, Public Policy and Public Administration | Policy Design, Analysis, and Evaluation | Public Affairs, Public Policy and Public Administration
© Lyndsey Ann Parker
Parker, Lyndsey Ann, "Evaluating the Impact of Off-Farm Decisions on Federal Government Program Utilization and Financial Success for Missouri's Beginning Farmers" (2022). MSU Graduate Theses. 3744.
Agribusiness Commons, Agricultural and Resource Economics Commons, Agricultural Economics Commons, Econometrics Commons, Economic Policy Commons, Environmental Policy Commons, Finance Commons, Labor Economics Commons, Other Public Affairs, Public Policy and Public Administration Commons, Policy Design, Analysis, and Evaluation Commons