Table 6. Financial Factors and Correlation to Success for All Livestock** Operations
|
Factor |
Rank |
Correlation |
t-statistic*_________________ |
|
Expense / Receipts |
1 |
-0.721 |
6.986 |
|
Debt / Assets |
2 |
-0.678 |
6.192 |
|
NCFI / Acre |
3 |
0.625 |
5.365 |
|
Real Estate Investment / Acre |
4 |
0.332 |
2.363 |
|
Crop Receipts / Acre |
5 |
-0.241 |
1.669 |
|
Interest Exp / Receipts |
6 |
-0.241 |
1.667 |
|
Long Term Debt / Acre |
7 |
0.223 |
1.538 |
|
Off-Farm Income |
8 |
0.213 |
1.464 |
|
Depreciation / Receipts |
9 |
0.210 |
1.443 |
|
NCFI Standard Deviation |
10 |
-0.168 |
1.145 |
|
Family Living Expense |
11 |
-0.140 |
0.946 |
|
Intermediate Term Debt / Acre |
12 |
0.126 |
0.852 |
|
Equipment Investment / Acre |
13 |
-0.123 |
0.833______________ |
*Bold t-statistics are significant at 95%
**Livestock sales account for more than 75% of all farm receipts
Table 7. Financial Factors and Correlation to Success for All Diversified** Farms
|
Factor |
Rank |
Correlation |
t-statistic*________________ |
|
NCFI / Acre |
1 |
0.612 |
5.364 |
|
Expense / Receipts |
2 |
-0.546 |
4.515 |
|
Debt / Assets |
3 |
-0.284 |
2.050 |
|
Family Living Expense |
4 |
-0.225 |
1.600 |
|
NCFI Standard Deviation |
5 |
-0.211 |
1.498 |
|
Off-Farm Income |
6 |
0.181 |
1.276 |
|
Interest Exp / Receipts |
7 |
-0.146 |
1.021 |
|
Real Estate Investment / Acre |
8 |
-0.119 |
0.827 |
|
Intermediate Term Debt / Acre |
9 |
0.070 |
0.487 |
|
Depreciation / Receipts |
10 |
-0.048 |
0.330 |
|
Long Term Debt / Acre |
11 |
0.044 |
0.307 |
|
Equipment Investment / Acre |
12 |
-0.033 |
0.226 |
|
________________________Crop Receipts / Acre_________ |
13 |
0.017 |
0.116______________ |
*Bold t-statistics are significant at 95%
**Farm can not be classified as primarily crop or livestock
The level of real estate investment per acre is only a significant factor for livestock
operations, and in that group the intensity of investment ranks as the fourth most important
factor. The correlation is positive suggesting that the livestock ranches with highest valued land