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FARM FINANCIAL MANAGEMENT: EMERGING PROBLEMS*
Author(s) -
KRAUSE KENNETH R.
Publication year - 1968
Publication title -
canadian journal of agricultural economics/revue canadienne d'agroeconomie
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.505
H-Index - 37
eISSN - 1744-7976
pISSN - 0008-3976
DOI - 10.1111/j.1744-7976.1968.tb02428.x
Subject(s) - agriculture , business , production (economics) , financial capital , finance , economics , financial management , human capital , economic growth , ecology , biology , macroeconomics
Changes in the structure of Agriculture and more particularly in food and natural fiber production during the last two decades have served to focus attention on the neglected area of farm financial management. Technical farm production decisions are becoming less difficult relative to financial decisions. Financial management is not only becoming more important but is vitally connected with problems of what is going to happen to family firms; what form of business organization should they use to acquire capital, how should they obtain capital, and how should management be obtained and organized. Financial institutions are also facing some serious questions for which answers are scarce, not only because of lack of available information, but also because of conceptual voids. This paper discusses these problems particularly as they relate to relevant areas for research inquiry. Summary It is unlikely that the changes giving rise to the need for more attention to the agricultural finance areas will slow down in the foreseeable future. Financial parameters will be the major determinants of the entrepreneurial independence of family size and large food and natural fiber producers. The financial problems already confronting farming are numerous and complex, and the task ahead for the agricultural economists is great since time cannot be neutral in its effect if progress is to be achieved.