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Management of investment processes on Finnish farms

Mattila, Timo; Manninen, Marja; Rikkonen, Pasi and Kymäläinen, Hanna-Riitta (2008) Management of investment processes on Finnish farms. Agricultural and Food Science, 17 (1), pp. 18-30.

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Summary

Structural change in agriculture means a continuous need for investing in farm production. It is essential for the sustainable operations and the economy of the farm that such investments are successful. In this research, different stages of the investment process of farms were studied as well as the use of information and the success perceived during the investment process. The study was carried out with mail surveys and telephone interviews on the Finnish Farm Accountancy Data Network (FADN) farms. The most challenging investments were in animal husbandry buildings and, as to these investments, the comparison of alternatives was the most challenging stage. For most investments, the planning phase was considered more challenging than the implementation. Before making the decision, farmers acquired information from many sources, of which the opinion of the main customer and the experiences of fellow farmers were the most valued. Some of the products considered were so new on the market that it was not easy to get adequate information and, furthermore, the information given by suppliers was not always accurate. Decision-making was supported by calculations, but qualitative factors had a dominating role. Large basic decisions were made relatively quickly, while details needed a longer time to process. In general, farm managers were satisfied with their investments. Improvements in work quality and quantity were especially mentioned and generally qualitative factors were the ones first in mind when evaluating the successfulness of the investment.


EPrint Type:Journal paper
Keywords:investment process, decision-making, buying behaviour, farm management
Subjects: Farming Systems > Farm economics
Research affiliation: Finland > Univ. Helsinki
Finland > MTT Agrifood Research
ISSN:1795-1895
Related Links:http://www.mtt.fi/english
Deposited By: Koistinen, Riitta
ID Code:17080
Deposited On:06 May 2010 09:52
Last Modified:06 May 2010 09:52
Document Language:English
Status:Published
Refereed:Peer-reviewed and accepted

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