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How Much Farm Succession is Needed to Ensure Resilience of Farming Systems?

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  • Christine Pitson
  • Jo Bijttebier
  • Franziska Appel
  • Alfons Balmann

Abstract

Farm succession is a key policy concern of the EU's Common Agricultural Policy and the European Commission's proposals for the future. This article uses the agent‐based model AgriPoliS to study the effects of the availability of potential successors in two agricultural regions, one in Belgium (Flanders) and one in eastern Germany (the Altmark). The analysis provides no indication that considerably fewer successors would threaten the ability of the farming systems to ensure an adequate provision of private and public goods. Most farm closures occur due to the low efficiency of some farms which hinders the ability of famers to cover true long‐term opportunity costs, i.e. the possibility of earning a higher income outside agriculture. In both study regions, a lack of successors leads to adaptations which create new opportunities for other farms and, in Flanders, to higher economic prosperity at the regional level. The adaptations differ between regions due to existing farm structures, labour demands and costs, institutional frameworks, and the ability to exploit economies of scale. The results of the simulations challenge the notion central to many CAP policies – that more farm succession is better for European agriculture. These findings call for a contextualised reconsideration of agricultural policies which support structural change and regional growth – not hinder it. La transmission des exploitations agricoles à des successeurs est une préoccupation essentielle de la politique agricole commune (PAC) de l'Union européenne et dans les propositions de la Commission européenne pour l'avenir. Cet article utilise le modèle d'agent AgriPoliS pour étudier les effets de la disponibilité de successeurs potentiels dans deux régions agricoles, l'une en Belgique (Flandre) et l'autre en Allemagne de l'Est (Altmark). L'analyse ne donne aucune indication qu'un nombre considérablement moindre de successeurs menacerait la capacité des systèmes agricoles d'assurer une fourniture adéquate de biens privés et publics. La plupart des disparitions d'exploitations surviennent en raison de la faible efficacité de certaines, qui entrave la capacité des agriculteurs à couvrir les coûts d'opportunité réels à long terme, c'est‐à‐dire la possibilité de gagner un revenu plus élevé en dehors de l'agriculture. Dans les deux régions étudiées, le manque de successeurs conduit à des adaptations qui créent de nouvelles opportunités pour d'autres exploitations et, en Flandre, à une plus grande prospérité économique au niveau régional. Les adaptations diffèrent selon les régions en raison des structures agricoles existantes, des demandes et des coûts de la main‐d’œuvre, des cadres institutionnels et de la capacité d'exploiter les économies d’échelle. Les résultats des simulations remettent en question la notion centrale de nombreuses mesures de la PAC ‐ selon laquelle un plus grand nombre de transmissions d'exploitations agricoles à des successeurs est meilleure pour l'agriculture européenne. Ces résultats appellent à un réexamen contextualisé des politiques agricoles qui soutiennent le changement structurel et la croissance régionale ‐ et non qui le gênent. Ein zentrales politisches Anliegen der Gemeinsamen Agrarpolitik der EU und der Vorschläge der Europäischen Kommission für die Zukunft ist die Hofnachfolge. Dieser Beitrag untersucht anhand des agentenbasierten Modells AgriPoliS die Auswirkungen des Vorhandenseins einer potenziellen Betriebsnachfolge in jeweils einer landwirtschaftlichen Region in Belgien (Flandern) und in Ostdeutschland (Altmark). Die Ergebnisse der Analyse liefern keinen Hinweis darauf, dass eine mangelnde Betriebsnachfolge die Fähigkeit der landwirtschaftlichen Systeme, eine angemessene Versorgung mit privaten und öffentlichen Gütern sicherzustellen, gefährden würde. Die meisten Betriebsschließungen sind auf die geringe Effizienz einiger Betriebe zurückzuführen. Diese schränkt die Fähigkeit der in der Landwirtschaft tätigen Personen ein, langfristige Opportunitätskosten zu decken, d. h. die Möglichkeit, außerhalb der Landwirtschaft ein höheres Einkommen zu erzielen. In beiden Untersuchungsregionen entstehen durch eine mangelnde Nachfolge Anpassungen, die neue Möglichkeiten für andere Betriebe schaffen. In Flandern bewirken diese einen höheren wirtschaftlichen Wohlstand auf regionaler Ebene. Die Anpassungen unterscheiden sich aufgrund der bestehenden Betriebsstrukturen, der Arbeitsanforderungen und ‐kosten, der institutionellen Rahmenbedingungen und der Fähigkeit, Skaleneffekte zu nutzen, von Region zu Region. Die Ergebnisse der Simulationen stellen den zentralen Gedanken vieler GAP‐Politikansätze in Frage – nämlich, dass mehr Betriebsnachfolge für die europäische Landwirtschaft besser sei. Diese Erkenntnisse erfordern ein kontextbezogenes Überdenken der agrarpolitischen Ansätze, und zwar dahingehend, dass sie den Strukturwandel und das regionale Wachstum unterstützen und nicht behindern.

Suggested Citation

  • Christine Pitson & Jo Bijttebier & Franziska Appel & Alfons Balmann, 2020. "How Much Farm Succession is Needed to Ensure Resilience of Farming Systems?," EuroChoices, The Agricultural Economics Society, vol. 19(2), pages 37-44, August.
  • Handle: RePEc:bla:eurcho:v:19:y:2020:i:2:p:37-44
    DOI: 10.1111/1746-692X.12283
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    References listed on IDEAS

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    1. Meuwissen, Miranda P.M. & Feindt, Peter H. & Spiegel, Alisa & Termeer, Catrien J.A.M. & Mathijs, Erik & de Mey, Yann & Finger, Robert & Balmann, Alfons & Wauters, Erwin & Urquhart, Julie & Vigani, Mau, 2019. "A framework to assess the resilience of farming systems," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 176, pages 1-10.
    2. Kathrin Happe & Hauke Schnicke & Christoph Sahrbacher & Konrad Kellermann, 2009. "Will They Stay or Will They Go? Simulating the Dynamics of Single‐Holder Farms in a Dualistic Farm Structure in Slovakia," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 57(4), pages 497-511, December.
    3. Happe, Kathrin & Kellermann, Konrad & Balmann, Alfons, 2006. "Agent-based analysis of agricultural policies: An illustration of the agricultural policy simulator AgriPoliS, its adaptation and behavior," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 11(1).
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    1. Franziska Appel & Alfons Balmann, 2023. "Predator or prey? Effects of farm growth on neighbouring farms," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(1), pages 214-236, February.
    2. Federica Consentino & Gabriella Vindigni & Daniela Spina & Clara Monaco & Iuri Peri, 2023. "An Agricultural Career through the Lens of Young People," Sustainability, MDPI, vol. 15(14), pages 1-16, July.
    3. Unay‐Gailhard, İlkay & Brennan, Mark A., 2023. "Young farmers in “The New World of Work”: The contribution of new media to the work engagement and professional identities," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 88(2), pages 426-460.

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