Farm Values and Financial Performance of Diversified Farms
| dc.creator | Katchova, Ani L. | |
| dc.date | 2017-04-01T17:56:47Z | |
| dc.date.accessioned | 2026-07-09T06:28:13Z | |
| dc.description | Theoretical arguments suggest that diversification has both value-enhancing and value-reducing effects. Several finance studies have found that the average diversified firm is worth less than a portfolio of comparable single-segment firms. In agriculture, farms have different characteristics and diversification incentives than publicly-traded firms. This study examines the farm diversification discount using data from Illinois and the methodology developed by Burger and Ofek. The results show that, on average, a diversified crop/livestock farm has a lower value and lower return on equity than a portfolio of a specialized crop and livestock farm. The regression results examine the impact of various farm and operator characteristics on the level of diversification discount. | |
| dc.identifier | doi:10.22004/ag.econ.132372 | |
| dc.identifier | https://ageconsearch.umn.edu/record/132372/files/Katchova2002.pdf | |
| dc.identifier | http://ageconsearch.umn.edu/record/132372 | |
| dc.identifier.uri | http://hdl.handle.net/123456789/576943 | |
| dc.language | eng | |
| dc.publisher | ||
| dc.source | http://ageconsearch.umn.edu/record/132372 | |
| dc.title | Farm Values and Financial Performance of Diversified Farms | |
| dc.type | Text |