ANALYSIS OF GROWTH OF AGRICULTURAL FIRMS

Economic growth of farm firms depends on the manager's ability to know profitable opportunities, the desire for economic growth, and the ability to acquire the needed resources. Knowing profitable opportunities is the ability to define problems and analyze data so that resources are used for maximum profit. Desire for economic growth is determined by the goals of the manager and his family and the consequences of decisions. Growth in firm size requires the acquisition of capital to purchase livestock, machinery, or land, or acquire land by renting. Three groups of Kansas farmers were studied to determine resource productivity and adjustments in their group. Great differences existed in both the marginal value product of resources and the adjustments made. The fastest growing group made large increases in enterprises that were very profitable, which suggests their ability and desire to grow. The slowest growing group made relatively small resource adjustments, although profitable adjustments were available to them as for younger farmers. The goal for economic growth is related to the manager's age and family needs. The fastest growing group studied was the youngest, whereas the slowest growing group was the oldest. The oldest group had the largest size farm in 1950 and thus the greatest potential for growth. Possibly these older farmers did not recognize their profit opportunities as well as younger farmers, or their desire for growth was less because they had already achieved their objectives, and need for family income had diminished because children were grown. Le developpement economique ďentreprises agricoles depend (1) de la capacite du gerant a reconnoitre les situations qui peuvent lui porter profit (2) de son desire de developper son entreprise el (3) de son habiletea obtenir le capital necessaire. Reconnoitre les situations qui peuvent porter profit consiste en etant capable de definir les problemes el ďanalyser les fails pour pouvoir utiliser les resources disponibles de facon a realiser le profit maximum. Le desir de developper ľentreprise est determine par les buls du gerant el de sa famille et par les consequences de decisions prises. ľextension de ľentreprise exige ľacquisition du capital pour acheter betail, machines, terres oupour louerdu terrain. line etude faile sur trois groupes de fermiers au Kansas monlre ce qui determine la productivitye et les ajustements dans chaque groupe. Dans ces groupes il y avait de grandes differences dans la valeur marginale produil des resources et dans les ajustements faites par chaque groupe. Le groupe dont le developpement etait le plus rapide avail fait des extensions importantes a leurs entreprises el avail realiser de larges profits. Le groupe dont le developpement etait le moins rapide n'avait fail que de petits ajustements a leurs resources meme que les occasions profitables leur etaient aussi disponibles qu'aux jeunes fermiers. Le but de developper son entreprise depend de ľâge du gerant et des besoins de sa famille. Le groupe dont le developpement etait le plus rapide dans cette direction etait le groupe le plus jeune et vice versa. Le groupe le plus vieux possedait les plus grandes fermes en 1950 done ce groupe avail le plus grand potentiel. Il se peut que ces fermiers n'ont pas reconnu les occasions profitables aussi bien que ľon fail les plus jeunes, ou encore se peut-il que leur desire ďagrandir leurs entreprises netait pas aussi marque parce qu'ils etaient deja arriver a leurs buls et que les besoins de la famille avaient diminue avec la maturation des enfanls.