Survival Analysis for the Adjustment Phase Following Investment in Swiss Dairy Sheds

Benedikt Kramer, Anke Schorr, Reiner Doluschitz and Markus Lips
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Benedikt Kramer: Farm Management Group, Agroscope, CH-8356 Ettenhausen, Switzerland
Anke Schorr: Farm Management Group, Agroscope, CH-8356 Ettenhausen, Switzerland
Reiner Doluschitz: Institute of Farm Management, Hohenheim University, D-70593 Stuttgart, Germany
Markus Lips: GUS Group, CH-9000 St. Gallen, Switzerland

Agriculture, 2019, vol. 9, issue 11, 1-8

Abstract: We analysed the adjustment phase following a dairy shed investment. On the basis of farm observations from both the Swiss Farm Accountancy Data Network (FADN) and a database of government-supported investments from 2003 through 2014, we focused on the imputed profit, the farm income minus opportunity costs for family labour and family capital. After investment, the analysed farms needed three years to return to the same profit level as that before the investment (median value). A Cox proportional-hazards model (survival analysis) showed that the probability of reattaining the imputed profit increased with equity capital. A reduction of the probability was related to a high imputed profit, a high off-farm income, high expenses for purchased animals and, in particular, a greater use of family labour before the investment. We conclude that the use of family labour after investment should be addressed more thoroughly during the planning process prior to an investment.

Keywords: investment; dairy cattle; imputed profit; Switzerland (search for similar items in EconPapers)
JEL-codes: Q1 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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