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Modeling Succession on Irish Dairy Farms

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  • Hennessy, Thia C.
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    Abstract

    This paper examines intergenerational succession on Irish dairy farms. The factors that influence the decision to enter dairying farming are examined using a binary choice logit model. Reasons that are frequently published in the popular farming press as being an obstacle to intergenerational succession are analysed and the significance of their effect is quantified. Results show that the level of education of the heir is the most significant factor in the succession decision. Heir's with third level education are 30% less likely to enter dairy farming than their second level only educated counterparts. The sizes of milk quota and income that are associated with high probabilities of succession are identified.

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    File URL: http://purl.umn.edu/24953
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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 24953.

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    Date of creation: 2002
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    Handle: RePEc:ags:eaae02:24953

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    Keywords: Dairy Farming; Structural Change; Succession; Logit Model; Farm Management;

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    1. repec:cdl:agrebk:677080 is not listed on IDEAS
    2. Ayal Kimhi & Noga Nachlieli, 2001. "Intergenerational Succession on Israeli Family Farms," Journal of Agricultural Economics, Wiley Blackwell, vol. 52(2), pages 42-58.
    3. Perloff, Jeffrey M, 1990. "The impact of wage differentials on choosing to work in agriculture," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt68j399k8, Department of Agricultural & Resource Economics, UC Berkeley.
    4. Gardner, Bruce L, 1992. "Changing Economic Perspectives on the Farm Problem," Journal of Economic Literature, American Economic Association, vol. 30(1), pages 62-101, March.
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