@article{Bernhardt:345983,
      recid = {345983},
      author = {Bernhardt, Kevin},
      title = {What Financial Characteristics Are Associated With Farms  That Do Well During Cyclical Lows?},
      address = {2022},
      series = {IFMA23},
      pages = {13},
      year = {2022},
      note = {Twenty-Third International Farm Management Congress,  Copenhagen, Denmark, 2022},
      abstract = {Production agriculture is a cyclical business, the primary  driver often being prices.  During times of low prices and  profitability, capital asset values often moderate or even  decrease below trends, thus providing opportunities.  The  question posed in this research is what financial  characteristics appear to be associated with those farms  that do well during cyclical lows.  That is, where are  these farms significantly different coming out of a  cyclical high that may be associated with their ability to  do well during the cyclical low and thus potentially take  advantage of opportunities? Data from 178 Wisconsin dairy  farms from 2014 to 2018 were used.  The year 2014 was the  last of a cyclical high in profitability and 2018 was the  last year of a cyclical low.  The farms were split into two  groups, high and low profit farms, by their Return on  Assets at the end of 2018.  Financial characteristics were  then compared for the same two groups at the conclusion of  2014. Significant differences resulted for costs of  production per sales unit, operating profit margin ratio,  production, and herd size.  The level of debt and working  capital was not significantly different, but there was  evidence of differing uses of debt.},
      url = {http://ageconsearch.umn.edu/record/345983},
      doi = {https://doi.org/10.22004/ag.econ.345983},
}