THE FARM DIVERSIFICATION DISCOUNT

Ani L. Katchova ()

No 20068, 2004 Annual meeting, August 1-4, Denver, CO from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: This paper examines the effect of diversification on farm value by comparing values of diversified farms to a portfolio of comparable specialized farms. Using data from the Agricultural Resource Management Study, this study finds a diversification discount in agriculture similar to the discount found for corporate firms. The results show that diversified crop/livestock farms have a value loss of 5.8% in comparison with specialized crop or livestock farms for 1999-2001. Farms with commodity diversification have a value loss of 9.4% in comparison with commodity specialized farms. The results also show that the value loss due to diversification is larger for leveraged farms.

Keywords: Farm Management (search for similar items in EconPapers)
Date: 2004
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://purl.umn.edu/20068 (application/pdf)

Related works:
Journal Article: The Farm Diversification Discount (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:ags:aaea04:20068

Access Statistics for this paper

More papers in 2004 Annual meeting, August 1-4, Denver, CO from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)
Contact information at EDIRC.
Series data maintained by AgEcon Search ().