2001Agricultural Finance ReviewRequires access

Off‐farm investment of farm households: A logit analysis

Ashok K. Mishra, Mitchell J. Morehart

Open publisher page 44 citations

Abstract

This investigation considers factors affecting off‐farm investment of farm households. A national farm‐level survey was used to evaluate the effects of various farm and operator characteristics on the likelihood of off‐farm investment. Results suggest differences in level of education, age of the operator, off‐farm income, household net worth, leverage, farm size, farm diversification, management skills, and location influence off‐farm investment decisions.

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What this paper is about

This investigation considers factors affecting off‐farm investment of farm households. A national farm‐level survey was used to evaluate the effects of various farm and operator characteristics on the likelihood of off‐farm investment. Results suggest differences in level of education, age of the operator, off‐farm income, household net worth, leverage, farm size, farm diversification, management skills, and location influence off‐farm investment decisions.

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Available abstract

This investigation considers factors affecting off‐farm investment of farm households. A national farm‐level survey was used to evaluate the effects of various farm and operator characteristics on the likelihood of off‐farm investment. Results suggest differences in level of education, age of the operator, off‐farm income, household net worth, leverage, farm size, farm diversification, management skills, and location influence off‐farm investment decisions.

Key concepts: Investment (military), Diversification (marketing strategy), Logit, Agricultural economics, Leverage (statistics), Business, Survey data collection, Economics

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