A Multivariate Analysis of Factors Influencing Farm Machinery Purchase Decisions

This paper presents a model of the farm management process. The model suggests that certain socioeconomic characteristics of farm managers will influence their decision-making process. Several characteristics are hypothesized and tested using multivariate techniques (multivariate analysis of variance, range tests, and multiple comparisons). The analysis indicates that the soil zone, value of machinery inventory, operator's age, and operator's education influence the importance placed on each of 20 factors. On the basis of the analysis it was concluded that such a model of the farm management process can contribute to an understanding of farm management decisions. In addition, it was concluded that farm managers, farm machinery dealers, and extension agents had significantly different perceptions of the importance of these factors to farm managers. This latter conclusion suggests that more research related to the actual process of decision making is warranted.