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Succession In Family Farm Business: Empirical Evidence From The U.S. Farm Sector

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  • Mishra, Ashok K.
  • El-Osta, Hisham S.
  • Johnson, James D.

Abstract

Survival of many family farms is dependent on successful intergenerational transfer. Given the importance of succession in the farm sector, the purpose of this paper is to examine factors that are likely to influence succession decisions on U.S. farms. The paper uses 2001 ARMS data and a multinomial Logit (MNL) regression to estimate family succession, non-family succession, and farm exit decisions of farm households in the U.S. Model choice and specification issues are discussed. Results indicate that operator's education, household wealth, growth in farm size, and farm debt are important factors that determine succession decisions. Additionally, farm specialization is taken into consideration when farm operators make their succession plans.

Suggested Citation

  • Mishra, Ashok K. & El-Osta, Hisham S. & Johnson, James D., 2004. "Succession In Family Farm Business: Empirical Evidence From The U.S. Farm Sector," 2004 Annual meeting, August 1-4, Denver, CO 20114, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea04:20114
    DOI: 10.22004/ag.econ.20114
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    1. Dudek, Michał, 2016. "A matter of family? An analysis of determinants of farm succession in Polish agriculture," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 118(2), pages 1-7, August.
    2. Glauben, Thomas & Tietje, Hendrik & Weiss, Christoph R., 2005. "Analysing Family Farm Succession: A Probit and a Competing Risk Approach," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24699, European Association of Agricultural Economists.
    3. Berlinschi, Ruxanda & Swinnen, Johan F.M. & Van Herck, Kristine, 2012. "Subsidies and agricultural employment: The education channel," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126776, International Association of Agricultural Economists.
    4. Glauben, Thomas & Tietje, Hendrik & Weiss, Christoph R., 2004. "Sussession In Agriculture: A Probit And Competing Risk Analysis," 2004 Annual meeting, August 1-4, Denver, CO 20067, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Chi Su & Richard A. Schoney & James F. Nolan, 2023. "Buy, sell or rent the farm: succession planning and the future of farming on the Great Plains," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 18(3), pages 627-669, July.
    6. Vare, Minna & Weiss, Christoph R. & Pietola, Kyosti, 2005. "Should One Trust a Farmer's Succession Plan? Empirical Evidence on the Intention-Behaviour Discrepancy from Finland," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24622, European Association of Agricultural Economists.
    7. Carillo, Felicetta & Carillo, Maria Rosaria & Venittelli, Tiziana & Zazzaro, Alberto, 2013. "Aging and succession on Italian farms," Politica Agricola Internazionale - International Agricultural Policy, Edizioni L'Informatore Agrario, vol. 2013(1), March.
    8. Lukasz SATOLA & Tomasz WOJEWODZIC & Wojciech SROKA, 2018. "Barriers to exit encountered by small farms in light of the theory of new institutional economics," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 64(6), pages 277-290.
    9. Foltz, Renee D. & Marshall, Maria I., 2012. "Family Business Decision-Making: Factors and Influences on Choosing a Successor," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124272, Agricultural and Applied Economics Association.

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