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Successful Dairy Farm Debt Management Strategies

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Abstract

Stochastic dominance was used to group 112 dairy farms based upon 10 years of returns to equity capital. Debt strategies of farms partitioned by first-degree stochastic dominance were similar. Second-degree efficient farms were consistently less indebted. Compared to 1974-1978, debt management during 1979-1983 was more important for high return rates.

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1985-07

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Charles H. Dyson School of Applied Economics and Management, Cornell University

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