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EU farmers' intentions to invest in 2014-2020: complementarity between asset classes

Author

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  • Lefebvre, M.
  • Gomez y Paloma, Sergio
  • Viaggi, D.

Abstract

This article aims to analyse the determinants of EU farmers' intentions to invest in the period 2014-2020. It analysed data of a survey of 780 farmers interviewed in spring 2013, covering 6 EU countries (Czech Republic, Germany, Spain, France, Italy, Poland) and four different farm types (arable crops, livestock, perennial crops and mixed farms). A multivariate probit model is used in order to determine the factors explaining the willingness to invest or not to invest in various farm asset classes (land, building, machinery, training) by the surveyed farmers. The multivariate probit allows taking into account the possibility of simultaneous investments and the potential correlations among these investment decisions. We find that investments in different asset classes are complementary. Farmers willing to invest in one asset class are also willing to invest in other asset classes, after controlling for observable characteristics such as farm size, specialization, farmer's age. This paper contributes to the limited literature on farmers' investment decisions at EU level.

Suggested Citation

  • Lefebvre, M. & Gomez y Paloma, Sergio & Viaggi, D., 2015. "EU farmers' intentions to invest in 2014-2020: complementarity between asset classes," 2015 Conference, August 9-14, 2015, Milan, Italy 212037, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae15:212037
    DOI: 10.22004/ag.econ.212037
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    More about this item

    Keywords

    Agricultural and Food Policy;

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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