The analysis of variations in farm incomes on arable farms

Levinus C. Zachariasse

European Review of Agricultural Economics, 1977, vol. 4, issue 2, 149-161

Abstract: Summary Differences in profitability of similar arable farms (30–36 ha) in the North-East Polder, one of the new polders in the former Zuiderzee, have been analysed with help of factor analysis. Most of the variance in net revenue per ha (61–76%) was caused by the variance in gross returns per ha. Since very detailed technical information had been collected, differences in work organization and in physical yield per ha were analysed. Factors associated with differences in physical yield per ha and with long-term decisions concerning farm organization were analysed. In the analysis of differences in crop yields it appeared that the pattern of factors was very similar in both years. A group of 8 to 10 factors explained 60–86% of the variance in yield of each crop. In both years the greatest part (55–90%) of the variance in yield per ha originated in the initial period of the crop-growing process. Factors associated with long-term decisions concerning farm organization (labour supply and farm equipment) caused most of the variance in efficiency (60–65%) of work organization.

Date: 1977
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