Valuing Farm Financial Information

were relatively low (i.e., they were low performing as exhibited by relatively small gross sales
per acre).

Table 5. Distribution of Bids for Farm Records and Characteristics of Farmers in Four Bid Ranges

^aParticipants indicated time used by marking a time range; estimations were made to allow for ANOVA analysis. 0
hours/month=0 hours; likewise 0-10 hours =5; 10-20 hours =15; 20-30 hours =25; 30-40 hours =35; 30-40 hours
=35; and over 40 hours =45.

^bAnnual gross farms sales ranges from the survey were changed to: less than $100,000=$50,000; $100,000-
$250,000=$175,000; $250,000-$500,000=$375,000; $500,000-$1,000,000=$750,000; and over
$1,000,000=$1,500,000.

^c1=high school credit, 2=high school graduate, 3=college credit, 4=college graduate, 5=graduate credit, 6=graduate
degree.

^dP-value from an ANOVA test of the hypothesis that the mean value of the variable in the column is the same for all
bid ranges.

Because ANOVA can only be used with continuous dependent variables, the binary
results from the survey were analyzed through bid range categorization and mean response.
Several farm record keeping activities are of interest. Specific interest areas include: (a) how
accurate are the financial records; (b) what measures of farm performance are used; (c) what type
of financial training has been received; (d) how is technology used; and (e) how are records used.

Table 6 reports the mean responses of survey questions pertaining to record accuracy, key
financial performance measures, and financial training. The type of accounting system used (i.e.,
cash or accrual) and the method of valuing assets (i.e., cost basis or market value) were

16

<<   <   14   15   16   17   18   19   20   >   >>