How can Farmer Managerial Capacity Contribute to Improved Farm Performance? A Study of Dairy Farms in Sweden

This paper investigates how managerial capacity aspects influence efficiency of dairy farms in Sweden. Based on non-parametric methods, Tobit and logistic regressions, several managerial capacity aspects are found to influence long and short run input efficiency scores, but to influence output efficiency less. Examples of important aspects are: internal locus of control, positive profitability attitude, profitability perception and participation in study circles. Based on this, a way of supporting dairy farms to become more profitable is to organize educational and discussion clubs where the farmers learn from each other and form professional dairy farm advisors.