Drivers linking farmers’ decision-making with farm performance: A systematic review and future research agenda

Abstract

A strong aptitude for making sound decisions on a farm is closely linked to favorable farm outcomes, and this finding has been observed across diverse types of farm businesses and geographic locations. Traditionally, research in farm management has addressed the drivers of decision-making and performance as separate entities; however, this article presents novel evidence on the relationship between farmers' decision-making and farm performance. We also examine this association in various contexts of farm decision-making, spanning the past decade. Our comprehensive review encompasses 24 empirical studies conducted in accordance with the preferred reporting items for systematic reviews and meta-analyses (PRISMA) guidelines. The analysis focuses on research topics, performance measures, and methodological perspectives. The findings reveal seven key research topics: farmers' management capacity; the influence of management and farm structure; farmers' emotional attachment to their businesses; personal aspects, farm characteristics, and institutional settings; the significance of farm recordkeeping; joint decisions in farm decision-making processes; and rational inefficiencies in farm decisions. Most studies employed conventional farm performance measures, including financial indicators, technical efficiency, and productivity indicators. Existing studies have predominantly used quantitative methodologies. We also identified research gaps and provide suggestions for future investigations in this field. Our results underscore the pivotal role of decision-making ability in shaping farmers’ managerial capacity and, consequently, farm performance.

Keywords

• Agribusiness
• Farmer behavior
• Farming decisions
• Farm management
• Managerial capacity