Exogenous, unobserved factors often confound the effects of alliance networks. More capable farmers might be less likely to exit and more likely to have a large number of alliances. In this case the negative correlation between alliance network size and exit likelihood is due to the unobserved...

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...

We theoretically examine a farmer’s coverage demand with area and individual insurance plans as either separate or integrated options. The individual and area losses are assumed to be imperfectly and positively correlated. With actuarially fair rates, the farmer will fully insure with the...

This study uses a unique firm-level dataset to examine how falling trade costs from 1993-2001 affected entry, exit, productivity, and exporting in the Korean manufacturing sector. We verify many of the predictions of recent heterogeneous-firm models of international trade. For example, falling...

A farm’s physical investment is affected by its fundamental q and by its financial situation, with the later comprising both the firm’s liquidity and its possibility of facing capital market imperfections. This study determines the effects of government payments, depreciation, and inflation...

Faster agricultural development requires understanding whether the inverse land size-yield relationship exists or not. To verify the presence of this relationship, this study decomposes a yield index into separate components attributable to (1) efficiency, (2) soil quality, (3) land size, (4)...

In this paper, a dynamic optimization model was developed to simulate how farm-level realized price and profitability respond to yield change which was induced by climate change. Producers' acreage response was included in the dynamic model considering crop rotation effect. In the crop rotation...

This study allows for variation of trade costs among regions, since a single trade costs measure may not appreciate the large number and diverse regions of the United States through which trade in food manufacturing occurs.

This paper analyzes the variance in accounting profitability within the European food industry. Based on a large panel data set, the variance in return on assets (ROA) is decomposed into year, country, industry, and firm effects. Further on, we include all possible interactions between year,...