Abstract
The comparative financial performance of Southern Plains and US farm businesses was analyzed for the 1987–1989 period. The results showed no significant differences between the profitability ratios of the two groups of farms, except in the $40,000 to $249,999 sales class, where US farms performed at a higher level in two of the three years studied. In both groups, farms with gross sales of $250,000 or more had significantly higher profitability ratios among the three sales classes analyzed. The intergroup or interclass differences in performance were due primarily to the differences in efficiency and/or the leverage position of the farms. © 1993 John Wiley & Sons, Inc.
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