Scannell 1990

“Dairy Farm Families’ Financial Management” (Financial Counseling and Planning, Volume 1,
1990)

By: ELIZABETH SCANNELL

CONTACT: ELIZABETH SCANNELL

POSTAL: University of Vermont, 207 Terrill Hall, Burlington, VT 05405

PHONE: (802) 656-2097

This study analyzed the household financial management practices and well-being of 154 dairy
farm families. The debt-to-asset ratio was negatively related to age, and positively related to
presence of a child under 18 and to education of the spouse. Older respondents were pessimistic
about their present and near future financial well-being but they expected satisfaction in five
years. Farmers who use recommended financial management practices are satisfied with their
financial situation and have a safe debt-to-asset ratio. These results may have implications for
other small businesses.

KEY WORDS: financial management, satisfaction, financial ratio