Is Farm Management Skill Persistent?

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Farm management skills can affect farm managers' performance. In this article, farm management performance is analyzed based on yearly Illinois Farm Business Farm Management (FBFM) panel data across 6,760 farms from 1996 through 2011. Two out-of-sample measures of skill are used to analyze the ability of farm managers that consistently perform well over yearly and longer time horizons. Persistence tests show management skills are consistent and predictable. Results also suggest that the most skilled managers often generate better financial results.

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http://hdl.handle.net/123456789/594712

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https://ageconsearch.umn.edu/record/170170/files/Xin_AAEA2014.pdf

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University of Minnesota