Swiss Federal Research Station for Agricultural Economics and Engineering, Tänikon

Investment behaviour in Swiss agriculture

The farms recorded in the Swiss Farm Accountancy Data Network (FADN) of the FAT were grouped into homogeneous cohorts. Investment behaviour of these cohorts in machinery, residential buildings, farm buildings, and land was attributed to variables related to the farm and to the whole economy. The study showed that of every Franc invested in the farm, eleven Centimes were spent on machinery and eight Centimes on farm buildings. The higher the farm’s equity ratio, the greater the hesitation with regard to investing. Product prices, interest rates, and labour costs all have significant influence on investment behaviour.

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