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Reasons for developing or exiting business in the primary sector - A study of milk farmers in central-west Sweden

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  • Hansson, Helena
  • Johnsson, Viktor
  • Widnersson, Oskar
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    Abstract

    The aim of this research was to study empirically what characterize farms and farmers that choose to develop the milk production at their farms. The background was that several farms have exited milk production, which threatens both goals about rural development and also the activities of the dairies. Based on survey data from 313 milk producing farms in central-west Sweden and structural equation analysis, it was concluded that farms that are accustomed to changes will develop their milk production further. The results also showed that farms which are more dependent on their milk production are more likely to develop their milk production. Furthermore, it was indicated that satisfactory supply of qualified labour stimulates development of milk production, as do location of the farm at a longer distance from common facilities. The results also showed that the farmers who develop their farms have more positive expectations about profitability in milk production and are also less risk averse. Finally, the results indicated that information through trade magazines and similar oneway communication channels are used by those who develop their milk production and that farmers who develop their milk production are those who take actions to evaluate their strategic decisions more seriously.

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    Bibliographic Info

    Paper provided by European Association of Agricultural Economists in its series 2008 International Congress, August 26-29, 2008, Ghent, Belgium with number 44372.

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    Date of creation: 2008
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    Handle: RePEc:ags:eaae08:44372

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    Related research

    Keywords: farm management; rural development; strategic decision making; Farm Management; Livestock Production/Industries;

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    1. Joyce Willock & Ian J. Deary & Gareth Edwards-Jones & Gavin J. Gibson & Murray J. McGregor & Alistair Sutherland & J. Barry Dent & Oliver Morgan & Robert Grieve, 1999. "The Role of Attitudes and Objectives in Farmer Decision Making: Business and Environmentally-Oriented Behaviour in Scotland," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(2), pages 286-303.
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    Cited by:
    1. Jin-Tao Zhan & Yan-Rui Wu & Xiao-Hui Zhang & Zhang-Yue Zhou, 2012. "Why do farmers quit from grain production in China? Causes and implications," China Agricultural Economic Review, Emerald Group Publishing, vol. 4(3), pages 342-362, October.

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