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dc.contributor.authorMa, Wanglin
dc.contributor.authorRenwick, Alan
dc.contributor.authorZhou, X.
dc.date.accessioned2021-03-10T21:15:07Z
dc.date.available2020-07-16en
dc.date.issued2020-09
dc.date.submitted2020-05-02en
dc.identifier.issn0022-0302en
dc.identifier.urihttps://hdl.handle.net/10182/13555
dc.description.abstractFor a variety of reasons, dairy sector indebtedness has increased in recent years. However, it is not clear whether increased debt boosts or damages the economic performance of dairy farms. This paper provides empirical evidence by exploring the effects of farm debt measured by debt-to-asset ratio on dairy productivity and profitability, using the New Zealand DairyBase data of 2,637 dairy farms for a 10-yr period 2005 to 2014. A fixed-effects panel data model is utilized for the empirical analysis. The findings show that farm debt is significantly and negatively associated with both dairy productivity and profitability. We find that dairy productivity is positively determined by production intensification, irrigation intensity, milking frequency, cattle breeds and stocking rate, whereas dairy profitability is positively affected by milk price, business type, milking frequency, and stocking rate. Further analyses reveal that the debt ratio significantly decreases both the technical efficiency of dairy farms and return on assets; a high debt ratio increased dairy productivity between 2005 and 2009, whereas it decreased dairy productivity between 2011 and 2014; the effects of the debt ratio on dairy profitability vary over time. The analysis for a 10-yr balanced panel data (250 farms) shows that debt ratio does not significantly affect both dairy productivity and profitability, which suggests that the presence of farm-specific attributes such as farm life cycle and managerial ability of dairy farmers may also affect the debt ratio and through this farm performance.en
dc.format.extent8251-8256en
dc.language.isoen
dc.publisherElsevier and Federation of Animal Science Societies (FASS) on behalf of the American Dairy Science Association
dc.relationThe original publication is available from - Elsevier and Federation of Animal Science Societies (FASS) on behalf of the American Dairy Science Association - https://doi.org/10.3168/jds.2019-17506en
dc.relation.urihttps://doi.org/10.3168/jds.2019-17506en
dc.rights© 2020, The Authors and American Dairy Science Association®.
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/4.0/en
dc.subjectdebt ratioen
dc.subjectproductivityen
dc.subjectprofitabilityen
dc.subjectdairy farmingen
dc.subjectNew Zealanden
dc.subjectDairy & Animal Scienceen
dc.subject.meshAnimalsen
dc.subject.meshCattleen
dc.subject.meshDairyingen
dc.subject.meshFarmsen
dc.titleShort communication: The relationship between farm debt and dairy productivity and profitability in New Zealanden
dc.typeJournal Article
lu.contributor.unitLincoln University
lu.contributor.unitFaculty of Agribusiness and Commerce
lu.contributor.unitDepartment of Global Value Chains and Trade
dc.identifier.doi10.3168/jds.2019-17506en
dc.subject.anzsrc070106 Farm Management, Rural Management and Agribusinessen
dc.relation.isPartOfJournal of Dairy Scienceen
pubs.issue9en
pubs.organisational-group/LU
pubs.organisational-group/LU/Faculty of Agribusiness and Commerce
pubs.organisational-group/LU/Faculty of Agribusiness and Commerce/GVCT
pubs.organisational-group/LU/Research Management Office
pubs.organisational-group/LU/Research Management Office/PE20
pubs.organisational-group/LU/Research Management Office/QE18
pubs.publication-statusPublisheden
pubs.volume103en
dc.identifier.eissn1525-3198en
dc.rights.licenceAttribution-NonCommercial-NoDerivativesen
lu.identifier.orcid0000-0002-4756-5709
lu.identifier.orcid0000-0001-7847-8459


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