Ludwig M. Eisgruber

The Impact of Managerial Ability and Capital Structure on Growth of the Farm Firm

A simulation model of farm firm behavior in a dynamic environment with elements of uncertainty was developed. The decision makers formulation of expectations regarding future prices and yields, his selection of alternative farm plans, evaluation of the expected outcomes of the plans with respect to four goals, and implementation of the plan offering the highest level of overall satisfaction are explicitly considered. The expectations, goals, and resource position of the firm are adjusted to reflect the outcome of the particular plan implemented, and the process is repeated for the next year. A case was simulated for a period of 20 years under three different levels of managerial ability and 27 different capital market structures. It is concluded that managerial ability and long-term loan limits are the major factors, among those considered, influencing farm firm growth.

A Note on the Application of Linear Programming by Agricultural Economics Departments of Land Grant Colleges

mittee carefully prepared statements for the various curriculum committees and staff, setting forth the genesis of the program, pertinent data relevant to the previous unrevised curriculum and to those of other schools, and an explanation as to the place of each course and allocation of credit in the proposal. Somewhat surprisingly, the revised curriculum was approved in toto with solid support both from the agricultural and nonagricultural staffs. The revision has been in effect too short a time for a meaningful appraisal of its merits in practice.