Differences in profitability among higher debt AgFA dairy farms 2003

dc.contributor.authorArnold, Elsa
dc.contributor.authorHadley, Gregg
dc.date.accessioned2006-09-14T21:36:59Z
dc.date.available2006-09-14T21:36:59Z
dc.date.issued2006-02
dc.description14 p.en
dc.description.abstractDebt can be an effective tool to improve dairy farm businesses? profitability. Over time, farmers and lenders perceptions of acceptable debt loads have changed. In today?s dairy business expansions, it is not uncommon to see farms with >70% debt compared to asset values. This study evaluates ROROA (rate of return on assets) on a subset of high-debt farms defined as those with a debt-to-asset ratio greater than 0.4 or 40% debt. Key significant differences were pinpointed between high and low profit farms within this subset. One of these was the asset turnover ratio. Higher milk prices and more efficient asset utilization were key factors in the profitability of the high-profit farms.en
dc.format.extent198429 bytes
dc.format.mimetypeapplication/pdf
dc.identifier.citationArnold, Elsa and Gregg Hadley. "The Differences in Profitability Among Higher Debt AgFA Dairy Farms 2003." Endeavor 2.1 (2006): 11-25.en
dc.identifier.urihttp://digital.library.wisc.edu/1793/6776
dc.language.isoen_USen
dc.publisherUniversity of Wisconsin-River Fallsen
dc.subjectMilk pricesen
dc.subjectDairy farmsen
dc.subjectDairy farms and financial performanceen
dc.subjectDairy farms and debten
dc.subjectAgriculture--United States--Financeen
dc.subjectDairy farms and profitabilityen
dc.subjectDairying--Economic aspectsen
dc.subjectDebten
dc.subjectRate of return on assetsen
dc.titleDifferences in profitability among higher debt AgFA dairy farms 2003en
dc.typeArticleen

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