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Annual net cash returns and net capital gains provide farmers with their actual and potential monetary rewards, respectively. This article reports on a national farm survey showing both actual and potential returns, on average, are not as high as might be imagined. This is supported by the findings of earlier studies and has implications for rural societies and their associated economies. Data on income, expenses and profit is presented as is data on farm value changes over the life of each farm. The information is adjusted for inflation to provide 'real' data. The profit and net capital gain figures are divided into groupings based on a range of criteria such as total farm capital, and labour compliment as a reflection of farm size. Statistically significant differences occur for some groupings such as farm type and farm size. ARTICLE HISTORY

Debt and income are keystones to financial resilience on New Zealand farms. This article utilises a survey on finance to assess farm financial health using a new model of resilience. It shows the majority of farms are financially strong. Further borrowing and development are possible. With increasing variability resulting from the longer term trade liberalisation as well as global warming impacts, the high equity will provide future resilience. On the other hand, profit levels are not high relative to the investment, but this has been the case for decades and has not caused problems due to farmer and farm family resilience. K E Y W O R D Sfarm debt, financial resilience, financing cost and payment, New Zealand, source of finance, use of finance

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Purpose The purpose of this paper is to investigate a farm manager’s personal characteristics (personality, age, education, objectives, experience, etc.) as drivers of debt payback success and rates. Traditionally bankers have used historic business statistics, and equity levels, to assess loans and credit worthiness. It is hypothesised that a managers’ personal characteristics are likely to be a better predictor of future debt payback performance. Design/methodology/approach The literature was searched to isolate the managers’ personal variables likely to determine debt payback. The information led to defining a quantitative model based on the theory of planned behaviour (TPB) which was hypothesised as determining payback rates where a choice was available. A postal random stratified survey of NZ owner operator farm managers provided the data to test the model and define its parameters using regressions, structural equation modelling and statistical comparisons. Findings The modelling results make it clear a manager’s personal characteristics are highly correlated with debt payback and, logically, are very likely to be the drivers. Four random effects equations and a comparison of high- and low-debt payback managers led to this conclusion. Practical implications Bankers should use the managers’ personal characteristics, as defined in the regressions, alongside traditional measures when assessing farm business loan requests. This approach is opposite to the traditional methods using mainly historic data. Originality/value The use of the TPB in assessing debt payback is a new and novel approach showing how enduring personal characteristics can be used in assessing proposals, and particularly, entrepreneurs’ adventurist investments in situations where historic data are not available.

Purpose – The purpose of this paper is to evaluate the accountability practices of the directors in New Zealand and Australian dairy co-operatives. An interpretation of their practices, which focus on the relationship between directors and their farmer-shareholders, is informed by Roberts’ (2001a) understandings of a socializing accountability. Design/methodology/approach – The fieldwork consists of interviews with 23 directors, including all chief executive officers and chairmen, of six dairy co-operatives together with observations and document analysis. These co-operatives together comprise a significant portion of the regional dairy industry. The methodology draws from Eisenhardt’s (1989) qualitative approach to theory formation. Findings – The authors find that these directors engage in a discourse-based, community-grounded and egalitarian form of socializing accountability. As such, their practices adhere generally to Roberts (2001a) hopes for a more considerate and humble relationship between an accountor and an accountee. Social implications – Findings add to the small pool of research on the lived experiences of co-operative boards and to a parsimonious literature in socializing accountability practices. The contributions of the study are in advancing real understandings of alternative forms of accountability, in evaluating the conditions in which these alternatives may be likely to arise and in anticipating the challenges and opportunities that arise therefrom. Originality/value – The originality of the project arises from accessing the views of these industry leaders and, through their frank expressions, coming to understand how they achieve a form of a socializing accountability in their relationships with farmer-shareholders.

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