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The need for and extent of own capital formation in farms

The need for and extent of own capital formation in farms

Bayerisches Landwirtschaftliches Jahrbuch (1): 56-81

The general trends in costs and returns in GFR farms are examined. It is calculated that an annual increase in returns of DM 2200 for dairy farms (20 ha) and DM 3700 for cash cropping farms (70 ha) is needed to keep pace with rising farm costs and cost of living. This can only be achieved by extending capacity. For arable farms (assuming 50% self finance) this will require from DM 58-DM 291/ha depending on whether additional machinery as well as land is required.

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