Business growth strategies of Illinois grain farms
Abstract
This study identifies key strategies employed by Illinois grain farms to prevent the erosion of their equity positions due to significant downturns in commodity prices during the implementation of the 1996 farm bill. The econometric results emphasize the collective importance of revenue enhancement, cost reduction, and capital management strategies. Nonfarmārelated strategies aimed at minimizing equity withdrawals through regulated family living expenditures, as well as supplementing low farm incomes with receipts from nonfarm employment and investments, significantly affect cost value equity growth rates. Moreover, significant financial and asset management strategies include those that minimize the costs of borrowing and maintain high asset productivity levels through elimination of excess farm capacity.
Keywords
Citation
Escalante, C.L. and Barry, P.J. (2002), "Business growth strategies of Illinois grain farms", Agricultural Finance Review, Vol. 62 No. 1, pp. 69-79. https://doi.org/10.1108/00214890280001130
Publisher
:MCB UP Ltd
Copyright © 2002, MCB UP Limited