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Explaining the Changing Institutional Organisation of Dutch Farms: The Role of Farmer's Attitude, Advisory Network and Structural Factors

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  • Jongeneel, Roelof A.
  • Slangen, Louis H.G.
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    Abstract

    Although still the family farm is the dominant farm type there are changes in the legal mode of organization. Applying the new institutional economics and economic organisation theory the different organisation modes are explained, mainly in terms of control and income rights. Important factors are (limited) liability, risk-bearing costs, transaction costs, and residual control and income rights. This is subsequently applied to Dutch agriculture, taking into account its special characteristics. In an empirical follow-up, based on a sample of all the farmers in the Netherlands, the farmers attitudes and the farm advisory network are analysed. Finally, farm types are explained using bivariate logit analysis, taking into account attitudinal, advisory-network and structural variables. Among other factors, especially the financial advisors appear to play a significant role in the organisation mode choice.

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    Bibliographic Info

    Paper provided by European Association of Agricultural Economists in its series 94th Seminar, April 9-10, 2005, Ashford, UK with number 24441.

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    Date of creation: 2005
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    Handle: RePEc:ags:eaae94:24441

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    Related research

    Keywords: farm organization; ownership and management; liability; risk; residual control and income rights; attitudes; advisory network; Industrial Organization;

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    1. Allen, Douglas W & Lueck, Dean, 1998. "The Nature of the Farm," Journal of Law and Economics, University of Chicago Press, vol. 41(2), pages 343-86, October.
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    Cited by:
    1. Piet, Laurent, 2008. "The evolution of farm size distribution: revisiting the Markov chain model," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44269, European Association of Agricultural Economists.
    2. Jongeneel, Roelof A. & Longworth, Natasha & Huettel, Silke, 2005. "Dairy Farm Size Distribution in East and West: Evolution and Sensitivity to Structural and Policy Variables: Case-Studies of the Netherlands, Germany, Poland and Hungary," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24772, European Association of Agricultural Economists.

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