THE EFFECT OF PHYSICAL AND ECONOMIC VARIABLES ON THE FINANCIAL RESULTS OF FARMS IN THE NORTHERN CAPE

G. du Toit and J. van Zyl

Agrekon, 1989, vol. 28, issue 3

Abstract: A typical farm was specified for the Bechuanaland subregion in terms of the physical, financial and operating features of farming in the area. The best method of acquiring the information to specify a typical farming unit is probably to use a combination of the group discussion technique and a postal survey. The typical value of every feature is best described by the median value of the distribution of the data for that feature. The simulation technique was used to determine the effect of inflation, interest rates, debt burden ratio and farm size on the financial results of the typical farm. The analyses indicate that every variable singly, and inflation, interest rates and debt burden ratios in combination, have a significant effect on the cash flow situation of farming in the Bechuanaland subregion. This micro-oriented information can be used beneficially in the policy-making and decision-making process in respect of this region.

Keywords: Financial Economics; Production Economics (search for similar items in EconPapers)
Date: 1989
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Persistent link: https://EconPapers.repec.org/RePEc:ags:agreko:268003

DOI: 10.22004/ag.econ.268003

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