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Farm investment and performance in the French (Brittany) dairy sector

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  • Lévi, Loïc
  • Latruffe, Laure
  • Ridier, Aude

Abstract

This paper investigates the link between farm investment and farm performance considering two types of farms that may have a different investment strategy: farms that are intensive in capital, and farms that have a low capital intensity. Panel data on specialized dairy farms of one sub-region of French Brittany (Ille-et-Vilaine) for the period 2005-2014 were used. Results from adjustment cost models indicate that farms tend to smooth their investments to limit adjustment cost and that farm performance has a negative impact on investment.

Suggested Citation

  • Lévi, Loïc & Latruffe, Laure & Ridier, Aude, 2016. "Farm investment and performance in the French (Brittany) dairy sector," 149th Seminar, October 27-28, 2016, Rennes, France 244951, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa149:244951
    DOI: 10.22004/ag.econ.244951
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    Environmental Economics and Policy; Farm Management;

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