FINANCIAL MANAGEMENT PRACTICES FOR FARM PROFITABILITY

Abstract

This research is based on two studies that could help farm managers make financial decisions about equipping a dairy farm with an automatic milking system or conventional milking system or for choosing the most profitable hybrid maize used in agriculture for the production of maize grains. The data were collected following the accounting of agricultural companies. In the case of the analysis of the most efficient milking system, a t test was used to compare the farms according to the technology used and the statistical calculations were performed with IBM SPSS V.22 software. The second study was based on four maize hybrids, marketed by different organic production companies. Two variables were studied: the purchase price of the seed/ha and the productivity/ha for each of the 4 maize hybrids for which the relationship between the purchase price of the seed / ha and the productivity/ha of each seed hybrid was analyzed statistically corn under study. It was observed that the economic efficiency of farms is similar regardless of the milking system, for large farms the conventional milking system could be more profitable. In the case of maize hybrids, a direct connection is observed between the two variables because the higher the purchase price of the seed/ha, the higher the productivity per ha.

Keywords

• financial decision