No. 24 (2006)


The Examination of the Effects of Value Modifying Factors on Dairy Farms

Published October 11, 2006
József Horváth
University of Szeged, College of Agriculture, Institute of Economics and Rural Development, Hódmezővásárhely
, Sándor Kovács
University of Debrecen, Centre for Agricultural Sciences, Faculty of Agricultural Economics and Rural Development, Department of Economic Analysis and Statistics, Debrecen
animal farm valuation value modifying effects multivariable statistical methods market price
How to Cite
Selected stlye: APA
Horváth, J., & Kovács, S. (2006). The Examination of the Effects of Value Modifying Factors on Dairy Farms. Acta Agraria Debreceniensis, (24), 36–40.

We wish to present a method to quantify the value modifying effects when comparing animal farms. To achieve our objective, multi-variable statistical methods were needed. We used a principal component analysis to originate three separate principal components from nine variables that determine the value of farms. A cluster analysis was carried out in order to classify farms as poor, average and excellent. The question may arise as to which principal components and which variables determine this classification.
After pointing out the significance of variables and principal components in determining the quality of farms, we analysed the relationships between principal components and market prices. Some farms did not show the expected results by the discriminant analysis, so we supposed that the third principal component plays a great role in calculating prices. To prove this supposition, we applied the logistic regression method. This method shows how great a role the principal components play in classifying farms on the basis of price categories.


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