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Intergenerational Succession on Family Farms: Evidence from Survey Data

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  • Glauben, Thomas
  • Tietje, Hendrik
  • Weiss, Christoph R.
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    Abstract

    This study examines family farms and characteristics affecting farm succession. Based on a farm survey, three aspects of succession are analysed in the paper: the probability of family succession; the likelihood of having a successor designated; and the timing of succession. Large and specialised farms are more likely to be transferred within the family and to have appointed a successor. The number of family members, as well as the experience of farm operator, is also significantly related to the succession behaviour. The probabilities of succession, and of having a successor, first increase with age and then decline again. Furthermore, timing of succession is delayed as the farm holder ages, suggesting most farm operators' succession plans to be inconsistent over time. In addition, we find a significant interrelationship between the different aspects of succession indicating that decisions on family succession, the designation of a successor, as well as the timing of succession, are not separable.

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    File URL: http://purl.umn.edu/24918
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    Bibliographic Info

    Paper provided by European Association of Agricultural Economists in its series 2002 International Congress, August 28-31, 2002, Zaragoza, Spain with number 24918.

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    Date of creation: 2002
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    Handle: RePEc:ags:eaae02:24918

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    Web page: http://www.eaae.org
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    Related research

    Keywords: farm succession; survey data; econometric analysis; Farm Management;

    References

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    1. Laurence J. Kotlikoff & Avia Spivak, 1979. "The Family as an Incomplete Annuities Market," NBER Working Papers 0362, National Bureau of Economic Research, Inc.
    2. Ayal Kimhi, 2000. "Is Part-Time Farming Really a Step in the Way Out of Agricultural?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(1), pages 38-48.
    3. Ayal Kimhi & Noga Nachlieli, 2001. "Intergenerational Succession on Israeli Family Farms," Journal of Agricultural Economics, Wiley Blackwell, vol. 52(2), pages 42-58.
    4. Kimhi, Ayal & Bollman, Ray, 1999. "Family farm dynamics in Canada and Israel: the case of farm exits," Agricultural Economics, Blackwell, vol. 21(1), pages 69-79, August.
    5. Ayal Kimhi & Ramon Lopez, 1999. "A Note on Farmers' Retirement and Succession Considerations: Evidence from a Household Survey," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(1), pages 154-162.
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    Cited by:
    1. Väre, Minna & Heshmati, Almas, 2004. "Perspectives on the Early Retirement Decisions of Farming Couples," IZA Discussion Papers 1342, Institute for the Study of Labor (IZA).
    2. Simeone, Mariarosaria, 2005. "The Generational Turnover in Agriculture: Theoretical Problems and Empirical Evidences," 94th Seminar, April 9-10, 2005, Ashford, UK 24434, European Association of Agricultural Economists.
    3. Tietje, Hendrik, 2003. "Hofnachfolgesituation in Deutschland: Eine empirische Analyse von Querschnittsdaten auf Kreisebene," FE Working Papers 0301, Christian-Albrechts-University of Kiel, Department of Food Economics and Consumption Studies.
    4. 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.
    5. 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).

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