Productivity of resources on farms in the Newdale-Hamiota area of Manitoba

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Auer, L.
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This study was based on farm business data obtained from 85 farmers in the Newdale-Hamiota area of Manitoba during 1957. Small, medium and large farms were selected. Approximately equal number of farms were included in each size group. It was the objective of the present study to determine the productivity of resources on these farms and to identity problems of resource allocation by the method of production function analysis. Imputs and outputs were evaluated on the basis of a questionnaire which was completed during a two-call survey. Bare land values were derived for each farm from records of the Municipal Assessment Branch. Labor inputs were measured in man hours. All capital expenditures were evaluated according to the farmers' estimates except for certain depreciation charges. A management index was included in the analysis. A general production function was determined statistically by fitting a Cobb-Douglas function to input-output data. This equation is shown below: Y- 0.09438X1 .60326 X2 .12626 X3 .48228 X4 .33415 In this equation Y is output in dollars, X1 is the bare land value in dollars, X2 is labor in man hours, X3 is annual capital input and X4 is a management index. It appeared from the analysis that most farmers operated on too small a scale. It could be concluded that a surplus of labor and a shortage of capital existed in the survey area. Managerial ability affected the productivity of land, labor and capital inputs.