Original scientific paper

FAMILY FARMS DECISON MAKING FEATURES

Lari Hadelan orcid.org/0000-0002-8499-0771 ; Agronomski fakultet Sveučilišta u Zagrebu, Zagreb, Hrvatska
Tea Karlić ; Kneza Ljudevita Posavskog 21, Zagreb, Hrvatska
Ornella Mikuš orcid.org/0000-0001-8116-3159 ; Agronomski fakultet Sveučilišta u Zagrebu, Zagreb, Hrvaska
Vjekoslav Par ; Agronomski fakultet Sveučilišta u Zagrebu, Zagreb, Hrvaska

Abstract

Based on the survey which included 34 family farms in Croatia, the paper summarizes the main features of business decision making of farmers, with emphasis on information basis, risk aversion, participants and goals. The most often used information sources are the professional journals and the agricultural extension service. Only 29.4% of respondents use the Internet as an information source. Unfortunately, even 41% of respondents do not keep a written record of business data. The majority of respondents are reluctant to risk and select a less profitable but safer business option. Production and market risks are the most important factors in selecting the production orientation. The respondents consider economic objectives of the farm more important than the social. In this sense, transferring the family business to the new generation and maintenance of traditional farming and rural life are rated as less important goals in relation to achieving the highest possible income. In the process of business decisions making all members of the family farms are involved, while only 6% of respondents make decisions without consulting the other members. According to expectation, larger farms devote more attention to recording business data, use the computer for business purposes more frequently and are more prepared to take risks than the smaller farms. The results show the need of the rationalization of the business decision making process on farms, and the unsatisfactory state of the information base as a prerequisite for high quality business decisions.

Keywords

business decision making; family farm

Hrčak ID:

95357

URI

https://hrcak.srce.hr/95357

Publication date:

28.10.2012.

Article data in other languages: croatian

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