Helena Hansson

How can farmer managerial capacity contribute to improved farm performance? A study of dairy farms in Sweden

Abstract This paper investigated how managerial capacity aspects influence efficiency of dairy farms in Sweden. Based on data development analysis, Tobit and logistic regressions, several managerial capacity aspects were found to influence long and short run input efficiency scores, but to influence output efficiency less. Examples of important aspects are internal locus of control, idea of profitability, profitability perception and participation in study circles. Personal aspects of the farmer were found more important for efficiency than management systems aspects. Based on this, a way of supporting dairy farms to become more profitable is to organize educational and discussion clubs where the farmers learn from each other and from professional dairy farm advisors. Further, actions to strengthen the farmers’ locus of control, instrumental and intrinsic values might be worthwhile.

Measuring farmers’ preferences for risk: a domain-specific risk preference scale

A behavioral framework and psychometric theory were used to develop a domain-specific scale to measure farmers’ preferences (attitudes) for risk, when the expected benefits and perceived risks of each domain were explicitly modeled. Exploratory factor analyses based on a sample of 237 Swedish farmers highlighted three risk domains, which we termed ‘Up-to-date and in deliberate control of production,’ ‘Carefulness and planning in general’ and ‘Progressive farming.’ The results suggested that farmers are risk-averse in all domains. External validation of the domain-specific measurement scale suggested that it could significantly predict the observed five-year volatility in farm income. The suggested domain-specific measurement scale is of practical importance for the farmers themselves, the agribusiness, and for policy-makers.

The links between management's critical success factors and farm level economic performance on dairy farms in Sweden

Abstract Managements critical success factors (MCSFs) are used to indicate how farm profits develop, but their usefulness as profitability predictors has previously not been analyzed statistically. This paper explores the usefulness of some commonly used MCSFs in Swedish dairy farms, by investigating whether the MCSFs are significant predictors of economic efficiency. Further, the paper takes a comprehensive view of evaluating farm level efficiency, in that all major input and output efficiency scores are estimated. Previous literature has focused on only one score, or on only one perspective. Our results show that cost efficiency is the more problematic part of the profitability process. Especially the allocative part needs to be improved. Moreover, the results show that the MCSFs milk quality, herd fertility and involuntary culls ratio may not work as indicators of economic performance, whereas milk yield per cow and the mastitis ratio are significant indicators.

Defining and measuring farmers' attitudes to farm animal welfare

Identifying farmers’ attitudes to farm animal welfare (FAW) is an important step in determining farmers’ efforts to improve FAW, knowledge of which is of particular importance for understanding how the living conditions of production animals are determined. This study developed a hypothetical model of farmers’ attitudes to FAW, including the antecedents of these attitudes and possible influences on FAW-related behaviour. Two models for empirical measurement of attitudes, namely formative and reflective models, were also evaluated and compared. The results suggested that choice of measurement model considerably influences conceptualisation of attitudes and that there may be considerable model misspecifications in previous literature relating to farmers’ FAW attitudes. Existing literature on farmers’ FAW attitudes was reviewed with the aim of providing a preliminary indication of the coverage of farmers’ FAW attitudes. A need for future research related to farmers’ attitudes to FAW was identified.

Which preventive measures against mastitis can increase the technical efficiency of dairy farms

The aim of this paper was to explore if, and in that case how, various preventive measures against mastitis influenced the whole-farm economic outcome, measured as technical efficiency, of a sample of specialised dairy farms in Sweden. In particular, the paper aimed at analysing whether a change to preventive measures applied by fully efficient farms would be a way for inefficient farms to become fully efficient. First, technical efficiency was assessed for each farm in the sample based on farm-level accounting data and the data envelopment analysis. In a second step, the effects of preventive measures against mastitis (collected through a mail questionnaire) on technical efficiency were assessed with logistic regression. Keeping cows in a loose-housing barn, stimulating udders manually during milking, and having cows standing on clean bedding during milking were found to significantly increase the probability of a farm being fully efficient. Once the farmer considers the somatic cell count (SCC) to be too high, undertaking measures such as contacting a veterinarian, checking overall hygiene routines, and culling cows with high SCC were found to significantly increase the probability of a farm being fully efficient. Thus, these measures may be plausible targets for advisory services aimed at assisting farmers to become fully efficient, especially if they are confirmed in future studies. Several common preventive measures against mastitis, that is, choice of bedding material, frequency of cleaning stalls, pre-milking, post-milking teat disinfection, applying a milking order based on the SCC of cows, and milking high-SCC cows with a separate cluster, were found to have no statistically significant effect on farm economic outcome. However, these measures may still be valuable for non-economic goals, such as increased animal welfare, and the results imply that they can be implemented without negative impact on the economic performance of the farm.

Are larger farms more efficient?A farm level study of the relationships between efficiency and size on specialized dairy farms in Sweden

The study explored how economic, technical and allocative input efficiencies in specialized Swedish dairy farms are affected by differences in farm size. The efficiency analysis showed that costs could decrease by 30% if all farms were as efficient as the best farms in the sample. The effect of farm size was analysed in second-stage regressions. Two measures of farm size were considered: income from dairy and the number of hectares, together with squared measures of both size measures and variables to control for geographic location. The results showed that the relationships between farm size and efficiency can be described as non-linear, where efficiency first tends to decrease with size and then increase. The average scale efficiency was 94.7%, suggesting that, on average, the farms are close to their optimal scale. The paper concludes by suggesting that farm efficiency can be increased both by focusing on increasing the knowledge about how inputs can be more optimally combined and by growth of the farms. However, the latter suggestion requires farm growth aiming at the larger farm segments.;

Decision making for animal health and welfare: integrating risk-benefit analysis with prospect theory.

This study integrated risk-benefit analysis with prospect theory with the overall objective of identifying the type of management behavior represented by farmers’ choices of mastitis control options (MCOs). Two exploratory factor analyses, based on 163 and 175 Swedish farmers, respectively, highlighted attitudes to MCOs related to: (1) grouping cows and applying milking order to prevent spread of existing infection and (2) working in a precautionary way to prevent mastitis occurring. This was interpreted as being based on (1) reactive management behavior on detection of udder-health problems in individual cows and (2) proactive management behavior to prevent mastitis developing. Farmers’ assessments of these MCOs were found to be based on asymmetrical evaluations of risks and benefits, suggesting that farmers’ management behavior depends on their individual reference point. In particular, attitudes to MCOs related to grouping cows and applying milking order to prevent the spread of mastitis once infected cows were detected were stronger in the risk domain than in the benefit domain, in accordance with loss aversion. In contrast, attitudes to MCOs related to working in a precautionary way to prevent cows from becoming infected in the first place were stronger in the benefit domain than in the risk domain, in accordance with reverse loss aversion. These findings are of practical importance for farmers and agribusiness and in public health protection work to reduce the current extensive use of antibiotics in dairy herds.

Economic impacts of agriculture in Sweden: A disaggregated input–output approach

Abstract The purpose of this paper is to investigate the economic impact and potential of agricultural sectors and commodities in Swedish agriculture. In so doing, we disaggregate the single agricultural account of the Swedish national input–output (IO) table as presented in the MAKE and USE format. An analysis of the disaggregated system reveals the heterogeneous nature of farm types as regards their production and shows their use of intermediate inputs. High multipliers generally accrue to livestock production and commodities, specifically poultry and eggs. This would indicate that livestock sectors have a greater potential to stimulate output, employment and income throughout the economy. The potential for incorporating IO results into the assessment of rural development is also discussed.

Members’ attitudes towards cooperatives and their perception of agency problems

This study examines whether and how members’ perceptions of agency problems, in terms of the decision problem and the follow-up problem, shape their attitudes to agricultural cooperatives. The study is based on empirical data collected through a postal questionnaire sent to 2,250 Swedish farmers in 2013 (response rate ~40%). Exploratory factor analysis of a set of attitudinal measurement items was used to assess members’ attitudes to agricultural cooperatives. Seemingly unrelated regression analysis was used to identify the impact of members’ perceptions of agency problems on the attitude measures obtained from the exploratory factor analysis. The results suggest that perceived agency problems significantly explain members’ attitudes to their cooperatives. Therefore, working with these problems can be a way for directors of cooperatives to influence members’ attitudes and, in continuation, behaviors to these. This would be one way of developing more sustainable member-director relationships in these coope...

Evaluating the potential effectiveness of rural development programme targets on farms in FYR Macedonia – An efficiency study of grape-growing family farms

Abstract The validity of the rural development programme (RDP) targets chosen by government for farms in Former Yugoslav Republic (FYR) of Macedonia was examined by evaluating the influence of these targets on the farm efficiency. The method comprises two steps, with data envelopment analysis (DEA) applied to calculate farm efficiency in the first step and a Tobit regression analysis to examine the influence of RDP targets on efficiency in the second step. Farm-level data from a 2006–2008 survey were used to examine RDP measures targeted at stable yield, yield improvement and modernisation of equipment. The results indicate huge potential for efficiency improvement. More efficient farms used a smaller area, irrigated a smaller proportion of their total area, used less hired labour and used and paid less for inputs, but produced a larger quantity, with higher value per hectare. It was shown that not all the RDP targets implemented to improve efficiency were justified.