Canada is one of the few countries for which data exist on individual family farms over time. Using these data, researchers have been able to show that much of the microdynamics of family farms in Canada (e.g. changes in size distribution) can be attributed to farmer entry and exit. However, the behavioral aspects of the exit decision received little attention in the literature. A comparison of Canadian and Israeli data could help us understand these behavioral aspects because of the vast institutional differences between the farm sectors in the two countries, and the possible effect of the institutional setup on exit decisions. Comparison of exit patterns may enable us to identify the dependence of farmers' mobility on the institutional setup. This may also have policy relevance. In both Canada and Israel, exit probability decreases with the extent of off-farm work. We conclude that off-farm work is complementary rather than a substitute for farm work, perhaps due to its less volatile nature. Both, Canadian and Israeli farmers over a certain age are more likely to exit as they become older, which is a natural result, but exit probability in Canada rises much faster with age than in Israel. The major difference between Canadian and Israeli farm-exit patterns lies in the farm size. Farm size decreases exit probability in Canada but increases it in Israel. Perhaps this is because Israeli farm exits are less planned in advance than Canadian exits. Institutional constraints on land transactions in Israel may also playa role.
sing a binury-choice analysis, we study the likelihood of intrafamily intergenerational succession on Israeli family farms. This provides policyrelevant information on the long-U run suruival probabilities of these farms in a period of increased vulnerability of family farms. We compare two definitions of succession, one based on an official declaration of a succeeding child, and another which is more operational, based on the existence of an adult child who works on the farm alongside the parents. We also validate the probit results by comparing them to those of a more robust semi-nonparametnc method. We identifi a number of family and farm attributes whose #ects are statistically significant and consistent w'th economic theory based on the notion of an economic surplus resultingfiom intrafamily succession and on the notion of bargaining between the generations.The authors are senior lecturer and former graduate student respectively at
This article examines the relationship between maize productivity and plot size in Zambia. It offers a unique empirical approach. First, it focuses on maize, which is the major crop on small and medium size farms in Zambia, but also accounts for the endogenous determination of the size of the plot devoted to maize. Previous studies have used total farm size or harvested area. Second, it corrects for selectivity in maize cultivation. Third, it controls for differences in land quality and weather conditions across districts. Finally, it offers a structural interpretation of the above framework by modeling farm decisions as a sequential, two-stage process, in which land is first allocated to the different crops based on the information set of the farmers at the time of planting, and the yield is affected by subsequent application of inputs, the quantities of which may depend on additional information that is revealed after planting. We use this recursive structure and the differences in the information sets over time to identify the model. Copyright 2006 International Association of Agricultural Economists.
Canada is one of the few countries for which data exist on individual family farms over time. Using these data, researchers have been able to show that much of the microdynamics of family farms in Canada (e.g. changes in size distribution) can be attributed to farmer entry and exit. However, the behavioral aspects of the exit decision received little attention in the literature. A comparison of Canadian and Israeli data could help us understand these behavioral aspects because of the vast institutional differences between the farm sectors in the two countries, and the possible effect of the institutional setup on exit decisions. Comparison of exit patterns may enable us to identify the dependence of farmers' mobility on the institutional setup. This may also have policy relevance. In both Canada and Israel, exit probability decreases with the extent of off-farm work. We conclude that off-farm work is complementary rather than a substitute for farm work, perhaps due to its less volatile nature. Both, Canadian and Israeli farmers over a certain age are more likely to exit as they become older, which is a natural result, but exit probability in Canada rises much faster with age than in Israel. The major difference between Canadian and Israeli farm-exit patterns lies in the farm size. Farm size decreases exit probability in Canada but increases it in Israel. Perhaps this is because Israeli farm exits are less planned in advance than Canadian exits. Institutional constraints on land transactions in Israel may also playa role.
One of the most important questions regarding the phenomenon of part‐time farming is whether it is a stable situation or just a step in the way out of agriculture. This article provides support for the first possibility in the context of Israeli family farms in the 1970s. A multinomial logit model of work choices is estimated, including estimated transition probabilities among the explanatory variables. The results indicate that a high objective probability of exit from farming within the next decade decreased the tendency to engage in off‐farm work, especially in a full‐time job, in 1971.
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