Probability and timing of succession or closure in family firms: a switching regression analysis of farm households in Germany

Glauben, Thomas; Petrick, Martin; Tietje, Hendrik; Weiss, C.

doi:10.1080/00036840601131722

Cited by 66 publications

(53 citation statements)

References 22 publications

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“…This may support the views of Matthews (2012) and Glauben et al (2009) that the problem with generational renewal and what is essentially the barrier to entry for prospective entrepreneurs is the concentration of finite land and resources in the hands of older farmers, coupled with subsidy entitlements and lower debt which mean they are not incentivised to leave the industry. The resultant scarcity of land, resources and opportunities will in turn push up the costs of entry, ergo the barriers of entry, which in turn exacerbate the barriers to new entrants/entrepreneurs and entrepreneurial action.…”

Section: Productivity and Profitabilitysupporting

confidence: 72%

Entrepreneurial Younger Farmers and the �young Farmer Problem� in England

Hamilton¹,

Bosworth²,

Ruto³

2015

AgricultForest

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SUMMARYIn this paper we investigate the "Young Farmer Problem" in Europe with a specific focus on how it applies in England. The paper is intended as a discussion paper and represents a forerunner to a more comprehensive study of the raw Farm Business Survey data conducted through a Phd.Recent reforms of the European Union's (EU) Common Agricultural Policy (CAP) have specifically targeted young farmers for increased support; with young farmers being seen as more innovative, entrepreneurial and amenable to change. Furthermore, the EU has stated that the "generational renewal" of agriculture is critical for the long term viability of the sector. This paper investigates the business performance and entrepreneurial behaviour of younger farmers in England through empirical analysis of Farm Business Survey (FBS) data, and finds some evidence to support the notion of higher levels of performance among younger farmers. Farmers in the 35 -<45 years age group showed consistently higher levels of overall productivity, profitability and investment. Additionally, the results show that younger farmers demonstrate consistently higher levels of engagement with agri-environment schemes. This study concurs with the findings of Zagata and Sutherland (2015) in the need to improve targeting on the basis of age specifically in order to isolate the under 40 age group which is the focus of European policy and in the need to separate new entrants from inheritors in the assessment of young farmers; an objective which necessitates the analysis of raw data and the conduction of original research within the topic area. This paper and, importantly, the original research which will be conducted through the accompanying Phd will address the fifth research objective of the Research platform proposed by Zagata and Sutherland (2015) to test the characterisation of young people and new entrants to farming, as entrepreneurial innovators sympathetic to and amenable with the goals of the CAP.

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Section: Productivity and Profitabilitysupporting

confidence: 72%

Entrepreneurial Younger Farmers and the �young Farmer Problem� in England

Hamilton¹,

Bosworth²,

Ruto³

2015

AgricultForest

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“…Low-income levels in family-based DPS may indicate restricted access to capital to invest in equipment and technology to support routine activities and improve labor conditions (de Souza and Buainain, 2013), thus decreasing the probability of family succession (Suess-Reyes and Fuetsch, 2016). Larger farms show a higher probability of family succession (Glauben et al, 2004;Glauben et al, 2009;Mishra and El-Osta 2007;Valeeva et al, 2007). In dairy activity particularly, larger and more profitable dairy farms are more prone to family succession (Glauben et al, 2009).…”

Section: Discussionmentioning

confidence: 99%

“…Larger farms show a higher probability of family succession (Glauben et al, 2004;Glauben et al, 2009;Mishra and El-Osta 2007;Valeeva et al, 2007). In dairy activity particularly, larger and more profitable dairy farms are more prone to family succession (Glauben et al, 2009).…”

Section: Discussionmentioning

confidence: 99%

Structural features, labor conditions and family succession in dairy production systems in Paraná State, Brazil

et al. 2018

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-Brazil is the fourth largest milk producer in the world. Besides its economic relevance, milk production has an important social function in Brazil. Dairy activity employs a large amount of people and contributes to regional development. But some drawbacks remain, such as poor labor conditions and problems for family succession. Labor conditions may be critical for successors to decide whether to remain in dairy activity. Paraná is the second largest milk producer in Brazil, mainly with smallholder family dairy systems. This paper aims to discuss labor conditions, family succession and structural features in Paraná's dairy activity. Our hypothesis is that family-based farms present poorer structure, poorer labor conditions and are less prone to family succession. The method comprised face-to-face interviews with 153 dairy farmers, in two groups: 117 family-based farms (Group 1) and 36 hired-labor farms (Group 2). Common factor analysis led to identify three factors: "structure", "labor conditions" and "individual conditions to family succession". Dairy farms in Group 1 present poorer structural and labor conditions, although being more prone to family succession, partially supporting our above hypothesis. Thus, structural features and labor conditions seem not to be the driving factors for the intent to family succession, which suggests the existence of other incentives. Results also indicate the need to improve labor conditions, especially for Group 1, since poor labor conditions may threaten family succession in the very long run. Efforts to improve family labor conditions are necessary to ensure long-term sustainability of dairy farming in Paraná State. Further studies could investigate social, market, technology and political features directing decision-making in family succession. Expanding the variables for labor conditions and structure, as well as including other social and behavioral factors, could put more light on the differences between dairy farms using and not using hired labor. Finally, a deeper investigation on reasons why family-based farmers do not promote better labor conditions is critical for the future of Paraná's dairy sector.

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“…The economic viability of the farm plays a central role in the succession process (Davis et al, 2009;Glauben et al, 2009;Glauben et al, 2002;Hennessy and Rehman, 2007;Kennedy, 1991;Stiglbauer and Weiss, 2000;Zagata and Sutherland, 2015). The larger the farm (in terms of hectares or livestock units) the more likely it is to attract a successor.…”

Section: Factors Influencing Succession Retirement and Land Transfermentioning

confidence: 99%

89th AES Annual Conference Programme, Warwick, 2015

Banović¹,

Duesberg²,

Renwick³

et al. 2015

J Agricultural Economics

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Ireland's agriculture is characterised by an ageing farmer population and small average farm sizes. Past policy schemes developed to address these issues have been targeted at accelerating succession and retirement processes in agriculture. Their success however was limited. The process of succession, inheritance and retirement is complex and the decisionmaking of farm families in these situations is influenced by many factors. In order to develop more successful policies to encourage the early transfer of land and to increase farm sizes a better understanding of these factors is necessary. The paper addresses this question by employing a Neural Network Analysis with data collected through a survey of Irish farmers' perception on succession and land mobility measures in 2012. The analysis shows that while many farmers in general are in favour of various land mobility measures, they would not consider taking advantage of any of them, which in part could be explained by a large number of farmers being unwilling to totally retire from farming.

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Probability and timing of succession or closure in family firms: a switching regression analysis of farm households in Germany

Cited by 66 publications

References 22 publications

Entrepreneurial Younger Farmers and the �young Farmer Problem� in England

Entrepreneurial Younger Farmers and the �young Farmer Problem� in England

Structural features, labor conditions and family succession in dairy production systems in Paraná State, Brazil

89th AES Annual Conference Programme, Warwick, 2015

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