Quantifying the parameters of successful agricultural producers

The primary purpose of the study was to quantify the parameters of successful agricultural producers. Through the use of the Financial and Risk Management (FARM) Assistance database, this study evaluated economic measures for row-crop producers, livestock producers and diversified producers (farms which can not be classified as primarily crop or livestock). The sample population for this study was agricultural producers (N=196) who had participated in the Texas Cooperative Extensions FARM Assistance program in the years 2002 to 2004. Financial performance was determined by several financial measures, such as net cash farm income, ending cash reserves, return on assets (ROA), equity growth and working capital. In addition, information gathered about the FARM Assistance clientele was used to examine the relationship between their demographic backgrounds and their financial success. SPSS was used to calculate frequencies, percentages, means, standard deviations, and administer one-way analysis of variance and independent sample t-test. The major findings of the study showed that the average age of the FARM Assistance participants was 51 years old. A large number of the participants (41.90%) in the FARM Assistance program had a Bachelor of Science degree. This study also revealed that the mean net cash farm income for the 196 operations was $91,970 with a range from negative $152,990 to $822,610. Row crop producers had a statistically significant higher ProScore index, net cash farm income, and net cash farm income per acre than livestock farms. Producers who started as farm employees had a statistically significant higher ProScore index than producers who started on their own, partnered with a family member, or those who selected other. Finally, producers who had fulltime, off farm employment had a statistically significant lower ProScore index than those producers who had part-time employment or those who did not have an off farm job.