Why small farms persist? The influence of farmers’ characteristics on farm growth and development. The case of smaller dairy farmers in NZ

Abstract

Human capital is an important resource in primary production impacting on farmers’ decisions and actions. Given their current and expected economic environment, farmers must use their human capital in mapping out a trajectory for their farm. This study considers particular aspects of farmers’ human capital and its influence on farm growth, or lack of it. Farmers’ characteristics as expressed through their personality, intelligence and objectives are the main human capital aspects considered in a sample of smaller NZ dairy farms. They are somewhat typical of western farmers working on smaller farms. They can be broadly classed into Expanders, Maintainers and Retractors. It is hypothesised each group will have distinct and different personal characteristics and these influence the farmers’ choice of trajectory. This is in addition to purely economic factors. It is also hypothesised the characteristics influence the farmers’ choice of development strategy and how challenges to the strategy are viewed. The data collected from the small dairy farms support the hypotheses suggesting the design of policy and extension programs must allow for these human capital drivers. Using past data, it is also shown aspects of human capital are different in large farms emphasising the same conclusion.

Production System Diversification and Livelihood in the Drylands of North Central Mexico

“…In contrast, the commercial farmers seem to be more active in their networks, using them as a strategy to obtain economic advantages. The present findings are in line with previous studies showing that social capital and human capital can explain differences in the trajectory of a production unit, in terms of growth or lack of growth [54].…”

How Farmers Conceive and Cope with Megatrends: The Case of Finnish Dairy Farmers

“…However, differences between the clusters were found in the orientation to farm management. In this regard, the results are similar to those reported by Westbrook and Nuthall [48], who emphasized the role of farmers' personal characteristics.…”

“…The positive (Cluster I), varying (Cluster II) or negative (Cluster III) assessments of the impacts of the megatrends seemed to have a logical association with specific behavioral factors that characterized farmers in each cluster. However, clustering has limitations, as Westbrook and Nuthall [48] emphasize; there are farms that can be located in two or more clusters, depending on the perspective of the research.…”

Modelling New Zealand dairy products: evidence on export survival and duration

“…(2019) show that technical efficiency on New Zealand dairy farms is positively and significantly influenced by feed use intensification, herd size and milking frequency. Westbrooke and Nuthall (2017) argue that farmers’ characteristics influence their choice of development strategy and persistence.…”