The Analysis of Net Farm Income: An Examination of Farm Management Survey Data

Britton, D. K.

doi:10.1111/j.1477-9552.1970.tb01390.x

Cited by 9 publications

(4 citation statements)

References 3 publications

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“…Both enterprise budgets and income statements are important in determining profitability, but income statements are preferable for determining farm profitability and losses (Engle, 2012). Net farm income is a core measure on the income statement which is also known as a profit and loss statement (Britton, 1970). A profit is indicated by a positive net farm income, whereas a loss is indicated by a negative net farm income (Hottel & Gardner, 1983).…”

Section: Methodsmentioning

confidence: 99%

Economic feasibility of fish cage culture in Lake Victoria, Kenya

Obiero

Mboya

Ouko

et al. 2022

Aquaculture Fish & Fisheries

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Fish cage culture has rapidly grown throughout Lake Victoria's shores, with Nile tilapia (Oreochromis niloticus) being the primarily cultured species. However, there is inadequate information on its economic viability. The study investigated the economic feasibility of fish cage farming system in Lake Victoria, Kenya, by evaluating the relationship between cost of inputs and revenue from fish sales and analysing the overall profitability of the fish cage culture in the lake. Systematic sampling was employed to select 200 cage farmers for the study. Structured questionnaire was used for data collection. Data was analysed using descriptive statistics, multiple regression analysis, gross margin analysis, net farm income and profitability ratios. The average quantity of fish produced in the production cycle was 11,971.53 kg from which an average of 9020.77 kg was sold at an average selling price of Kenyan Shillings (KSH) 281.36 (USD 2.60) per kg. The multiple regression results revealed that the cost of feeds (coefficient of −0.603) and fish seed (coefficient of −0.387) had a significant influence on returns from fish cage culture business at p < 0.01 and p < 0.05, respectively. The costs of feeds and fish seed were significant components of the total production cost, accounting for 60.25% and 33.50%, respectively. Fish cage production was profitable, with an average gross margin of KSH 1146,727.68 (USD 10,545.59) and net farm income of KSH 1020,518.78 (USD 9384.94) in a production cycle, with a benefit cost ratio of 1.43, an expense structure ratio of 0.06, a gross revenue ratio of 0.70 and a return on investment of 0.43. The study recommends formulation of friendly policies, legislations, operating guidelines and an enabling environment for feed and fish seed producers by policy makers to enhance fish feed and seed production and subsequently reduce prices of feed and seed. Through this, economic viability of fish cage culture will be enhanced.

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Section: Methodsmentioning

confidence: 99%

Economic feasibility of fish cage culture in Lake Victoria, Kenya

Obiero

Mboya

Ouko

et al. 2022

Aquaculture Fish & Fisheries

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show abstract

“…,1982Hill (G.P. ), 1984;Simon, 1979;Malcolm, 1978;Britton, 1977;Britton, 1970. These will all be referred to again in the review that follows, except for those by Simon and Malcolm, who were responding to Britton's Presidential Address (1977).…”

Section: Relevant Journal Articlesmentioning

confidence: 99%

“…After dismissing as being too simplistic the 1962/3 Cambridge allowance of f20 a week (f9,500 a year at current money values) for the farmer's management input (according to the percentage of time he said he spent on management as distinct from manual work), and calculating interest on tenant's capital after deducting various arbitrary levels of management salary per farm, Britton (1970) considered three alternatives for valuing this input:…”

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confidence: 99%

Aspects of Farm Profitability: An Outmoded Concept? Presidential Address

Nix¹

1990

J Agricultural Economics

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The paper begins by recording Journal articles since 1952 of relevance to farming incomes and efficiency, and follows by reviewing the literature on measuring farmers' incomes and the problems entailed, including consideration of non‐farming incomes and capital gains and their relevance to agricultural policy. Definitions of ‘profit’ in selected economic texts are then compared, together with attempts to measure ‘pure profit’ from farming. Suitable charges for management and interest are then determined and estimates made of net profits and losses from different types of farming in 1986/7 and 1987/8 for both average and ‘top’ farms. Real farming incomes and capital gains from land from 1938 to 1988 are then discussed. The paper concludes by summarising why the concept of profitability from farming has now largely lost its significance—though not for all farmers.

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“…Wilson (1973), however, obtained direct estimates from a random sample of 640 farms in his attempt to calculate the return on farm capital. Britton (1970) and more recently Simon (1979) have made proposals for the imputation of managerial payments but these do not seem to resolve the problem. * A complicating factor is that paid management is included but not distinguished in the FMS returns.…”

Section: Efficiency Ratiosmentioning

confidence: 99%

The Northfield Report: Structural Policy and Agricultural Efficiency

Simpson

1981

J Agricultural Economics

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A brief review of the Northfield Report on the Acquisition and Occupancy of Agricultural Land emphasises its general acceptance of the existing situation. An opportunity has been missed to develop more far reaching conclusions in respect of a policy area where scope for national initiative within the EEC remains. Although the Committee took an efficient agriculture as a principal objective its definition is not discussed and the only factual evidence quoted is the analysis by Britton and Hill based on the Farm Management Survey. The appropriateness of this is questioned and some alternatives are suggested. The Britton/Hill analysis does not give particular support for the Committee's advocacy of a family‐based farm structure. The Committee sees value in a let sector but expects its decline to continue. Nationalisation of agricultural land as the most direct route back to tenancy is rejected. Yet there is a need for the continuity of ownership to avoid leakages through capital taxes and family transfers. Nationalisation may be infeasible and in its absence, an alternative would be to positively discourage continuing owner occupation and over time to develop an effective land tax to recover support costs.

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The Analysis of Net Farm Income: An Examination of Farm Management Survey Data

Cited by 9 publications

References 3 publications

Economic feasibility of fish cage culture in Lake Victoria, Kenya

Economic feasibility of fish cage culture in Lake Victoria, Kenya

Aspects of Farm Profitability: An Outmoded Concept? Presidential Address

The Northfield Report: Structural Policy and Agricultural Efficiency

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