Viable economic farm types in the Interlake Region of Manitoba

Abstract

This study examines the economic viability of different types of farms in the Interlake Region of Manitoba. Twelve selected types of farms are used in the analysis. The objectives of the study are: (1) to determine optimum input combinations for the selected farm types; (2) to determine the amount and type of capital needed to achieve specified income targets; and (3) to assess the probable consequences on the structure and organization of agriculture in the region of pursuing the specified income targets. Income targets are determined in accordance with two specified viability criteria. The first criterion is based on the minimum net income needed to provide a satisfactory living for the farm operator and his family as well as growth of the farm business to maintain efficient production relationships. The second criterion is based on the net income required to meet opportunity cost on all inputs, A low and a high income target are used that correspond with these two criteria, respectively. A third income target is set midway between the first two...