Family farm dynamics in Canada and Israel: the case of farm exits

Abstract

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.

Factors affecting farm succession: the case of Slovenia

“…Potter and Lobley (1996a) also state that the majority of owners under 45 believe that it is too early to discuss the farm succession and plans connected with this. As determined by Weiss (1999b), Kimhi and Bollman (1999), and Juvančič (2002Juvančič ( , 2006, the probability of farm exit even decreases as the owner's age approaches 43, 44, or 45, but it continually increases after this. Weiss (1999b) connects this with the 'life cycle effect. '…”

“…Kimhi (1994) also paid attention to how the age and experience of the owner, the successor's level of education, socioeconomic characteristics, and characteristics of the farm affect when the owner transfers the farm to his/her successor. Kimhi and Bollman (1999) examined a 10-year period to determine why the owners of israeli and canadian farms decided to stop farming as well as the aspects of the owners' behavior connected with this decision. For each farm, they studied factors connected with its location, the personal characteristics of the owner, off-farm employment of the owner, the type of farm production, the size of the farm, and other characteristics of the farm.…”

Off-Farm Employment and Economic Crisis: Evidence from Cyprus

“…Several studies have showed that off-farm employment is complementary to farm work and slows down the exit from agriculture [4,5]. Conversely, other studies support that off-farm employment fosters the structural change in agriculture [6].…”

Are preserved farms actively engaged in agriculture and conservation?

“…The role played by gender in investment decisions is unclear, but this variable is commonly included in studies of farmer behavior or attitudes (Wilson et al, 2013;Inwood, 2008). Other things equal, farmers with more education are expected to invest more and be more innovative (Inwood, 2008;Fernandez-Cornejo and Daberkow, 2002;Prokopy et al, 2008;Skaggs and Samani, 2005), while older farmers are expected to invest less because of shortened time horizons (Kimhi and Bollman, 1999;Kimhi and Nachieli, 2001;Pietola et al, 2003;Lambert et al, 2007). If a farmer has a succession plan, however, then he or she may invest more, even at an advanced age (Kimhi, 1994;Inwood, 2008).…”