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Factors Affecting Succession Decisions in Family Farm Businesses: Evidence from a National Survey

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  • Mishra, Ashok
  • El-Osta, Hisham

Abstract

Succession planning is a component of a household’s risk management strategy for its farm business in as much as it is aimed at continuity of the business' management team. The family farm sector relies heavily on intergenerational succession. Succession and retirement are inter-linked and are reflective of the life cycles of the farm household and the farm business. This study uses Agricultural Resource Management Survey (ARMS) of the USDA to examine farm, operator, and family characteristics that affect farm succession within the family. Results indicate that large farms are more likely to be transferred within families. Level of farm debt, education, and being engaged in farm enterprises like other crops and dairy, affect within-family transfers of the farm business.

Suggested Citation

  • Mishra, Ashok & El-Osta, Hisham, 2007. "Factors Affecting Succession Decisions in Family Farm Businesses: Evidence from a National Survey," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2007, pages 1-10.
    • Handle: RePEc:ags:jasfmr:190674
    DOI: 10.22004/ag.econ.190674
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    2. Sharma, Sankalp & Bairagi, Subir K., 2021. "Role of Producer Risk-preferences on Debt Undertaking: Evidence from Nebraska," 2021 Annual Meeting, August 1-3, Austin, Texas 313998, Agricultural and Applied Economics Association.
    3. Chacattrai Rayasawath, 2018. "Factors Affecting the Household Succession in Agricultural Occupation in Nakhon Ratchasima Province, Thailand," Agriculture, MDPI, vol. 8(7), pages 1-14, July.
    4. Góngora, R. & Milán, M.J. & López-i-Gelats, F., 2019. "Pathways of incorporation of young farmers into livestock farming," Land Use Policy, Elsevier, vol. 85(C), pages 183-194.
    5. Adhikari, Arun & Mishra, Ashok K. & Chintawar, Sachin, 2009. "Adoption of Technology and Its Impact on Profitability of Young and Beginning Farmers: A Quantile Regression Approach," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46830, Southern Agricultural Economics Association.
    6. Menefee, Seth & Doye, Damona G., 2013. "Barriers to Entry for Young and Beginning Cattle Producers In Oklahoma," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 143048, Southern Agricultural Economics Association.
    7. Daniele, Bertolozzi-Caredio, 2024. "The farm succession effect on farmers’ management choices," Land Use Policy, Elsevier, vol. 137(C).
    8. Oliver Musshoff & Norbert Hirschauer, 2011. "A behavioral economic analysis of bounded rationality in farm financing decisions," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 71(1), pages 62-83, May.
    9. Foltz, Renee D. & Marshall, Maria I., 2012. "Family Business Decision-Making: Factors and Influences on Choosing a Successor," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124272, Agricultural and Applied Economics Association.
    10. Dudek, Michał & Pawłowska, Aleksandra, 2022. "Can succession improve the economic situation of family farms in the short term? Evidence from Poland based on panel data," Land Use Policy, Elsevier, vol. 112(C).
    11. Joshua D. Detre & Hiroki Uematsu & Ashok K. Mishra, 2011. "The influence of GM crop adoption on the profitability of farms operated by young and beginning farmers," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 71(1), pages 41-61, May.
    12. Markowski-Lindsay, Marla & Catanzaro, Paul & Bell, Kathleen & Kittredge, David & Leahy, Jessica & Butler, Brett & Markowitz, Ezra & Milman, Anita & Zimmerer, Rebekah & Allred, Shorna & Sisock, Mary, 2017. "Estate planning as a forest stewardship tool: A study of family land ownerships in the northeastern U.S," Forest Policy and Economics, Elsevier, vol. 83(C), pages 36-44.

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