Farming the wealth-creation way

摘要

This article presents a different perspective on assessing farm performance and provides some insights into financial objectives that should be set for a farm business. It does this by constructing value accumulation indices for farm businesses thatcan be compared to other investment opportunities. These other investment opportunities enable a farm business proprietor to consider the cost of equity capital invested in the business. The cost of equity invested in a farm is an opportunity cost and can be estimated by considering returns available from other investments with a similar level of risk.