This article investigates dairy farm investment behaviour and the presence of soft budget constraints in the dairy … accountancy panel data for the years 2007–2015. The empirical results confirm that gross dairy farm investment is positively … associated with gross dairy farm investment for the previous year for financially unconstrained dairy farms, and negatively for …

to recent dairy farmer's investment decisions and examines the relationship between the adoption of Fixed Milk Price … endogeneity including risk aversion. The results point to the economic relevance of the FMC adoption towards farm investment … decisions although the magnitude of the association is limited. Subsidies play an important role in the investment decision …