IDEAS home Printed from https://ideas.repec.org/a/gam/jagris/v11y2021i12p1203-d691132.html
   My bibliography  Save this article

Factors Affecting Farm Succession and Occupational Choices of Nominated Farm Successors in Gilgit-Baltistan, Pakistan

Author

Listed:
  • Muhammad Abid Shahzad

    (Faculty of Science and Technology, Free University of Bozen-Bolzano, 39100 Bolzano, Italy)

  • Syed Abubakr

    (Department of Agriculture and Agribusiness Management, University of Karachi, Karachi 75270, Pakistan)

  • Christian Fischer

    (Faculty of Science and Technology, Free University of Bozen-Bolzano, 39100 Bolzano, Italy)

Abstract

Mountain farming communities in Pakistan are exhibiting an increased rate of rural-to-urban migration and a rapid growth in the non-farm sector, which has threatened the sustenance of agricultural activity. This study examined the determinants of farm succession using a logit regression model and employed a multinomial logit regression model to study the factors influencing the future occupational choices of the potential farm successors. The study was based on quantitative survey data obtained from 421 farm managers and 155 potential farm successors and qualitative data from 12 key informants from two different districts in Gilgit-Baltistan. The survey results show that around 67% of the farmers had a potential successor. Farm succession was mainly explained by farmer characteristics (e.g., farmer age, gender and education), farm characteristics (e.g., farm size, specialization in horticulture, etc.) and agricultural income. Regarding the occupational choices, part-time farming (66%) was the most commonly reported choice. The results indicate that it was mainly farm successors’ personal characteristics (such as age, education and marital status) and agricultural income that led to the choices “undecided” and “exit”, whilst farm characteristics (e.g., farm size) and the main farm operators’ non-farm activity were significantly associated with the choice “part-time”. Policies aimed at improving the local income situation and investments in skill-building and infrastructure development can assist in farm sustenance.

Suggested Citation

  • Muhammad Abid Shahzad & Syed Abubakr & Christian Fischer, 2021. "Factors Affecting Farm Succession and Occupational Choices of Nominated Farm Successors in Gilgit-Baltistan, Pakistan," Agriculture, MDPI, vol. 11(12), pages 1-17, November.
  • Handle: RePEc:gam:jagris:v:11:y:2021:i:12:p:1203-:d:691132
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2077-0472/11/12/1203/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2077-0472/11/12/1203/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ashok Mishra & Hisham El-Osta, 2008. "Effect of agricultural policy on succession decisions of farm households," Review of Economics of the Household, Springer, vol. 6(3), pages 285-307, September.
    2. Geoff Kuehne, 2013. "My decision to sell the family farm," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 30(2), pages 203-213, June.
    3. Morais, Manoela & Borges, João Augusto Rossi & Binotto, Erlaine, 2018. "Using the reasoned action approach to understand Brazilian successors’ intention to take over the farm," Land Use Policy, Elsevier, vol. 71(C), pages 445-452.
    4. Pessotto, Ana Paula & Costa, Carlos & Schwinghamer, Timothy & Colle, Gabriel & Corte, Vitor Francisco Dalla, 2019. "Factors influencing intergenerational succession in family farm businesses in Brazil," Land Use Policy, Elsevier, vol. 87(C).
    5. Thia C. Hennessy & Tahir Rehman, 2007. "An Investigation into Factors Affecting the Occupational Choices of Nominated Farm Heirs in Ireland," Journal of Agricultural Economics, Wiley Blackwell, vol. 58(1), pages 61-75, February.
    6. Mishra, Ashok K. & El-Osta, Hisham S. & Shaik, Saleem, 2010. "Succession Decisions in U.S. Family Farm Businesses," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 35(1), pages 1-20.
    7. Ayal Kimhi, 1995. "Differential Human Capital Investments and the Choice of Successor in Family Farms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(3), pages 719-724.
    8. Alessandro Olper & Valentina Raimondi & Daniele Cavicchioli & Mauro Vigani, 2014. "Do CAP payments reduce farm labour migration? A panel data analysis across EU regions," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 41(5), pages 843-873.
    9. Alfred M. Stiglbauer & Christoph R. Weiss, 2000. "Family and Non-Family Succession in the Upper-Austrian Farm Sector," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, vol. 54, pages 5-26.
    10. Carolan, Michael, 2018. "Lands changing hands: Experiences of succession and farm (knowledge) acquisition among first-generation, multigenerational, and aspiring farmers," Land Use Policy, Elsevier, vol. 79(C), pages 179-189.
    11. Harris, James Michael & Mishra, Ashok K. & Williams, Robert P., 2012. "The Impact Of Farm Succession Decisions On The Financial Performance Of The Farm," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124749, Agricultural and Applied Economics Association.
    12. Manel Plana-Farran & José Luis Gallizo, 2021. "The Survival of Family Farms: Socioemotional Wealth (SEW) and Factors Affecting Intention to Continue the Business," Agriculture, MDPI, vol. 11(6), pages 1-16, June.
    13. Ayal Kimhi & Noga Nachlieli, 2001. "Intergenerational Succession on Israeli Family Farms," Journal of Agricultural Economics, Wiley Blackwell, vol. 52(2), pages 42-58, May.
    14. World Bank, 2010. "Pakistan - Gilgit-Baltistan Economic Report : Broadening the Transformation," World Bank Publications - Reports 2984, The World Bank Group.
    15. Shinpei Sano & Shunji Tada & Manabu Yamamoto, 2015. "Method of Household Surveys and Characteristics of Surveyed Households: Comparison regarding Household Composition, Annual Income and Educational Attainment," Public Policy Review, Policy Research Institute, Ministry of Finance Japan, vol. 11(4), pages 505-530, September.
    16. Zou, Baoling & Mishra, Ashok K. & Luo, Biliang, 2018. "Aging population, farm succession, and farmland usage: Evidence from rural China," Land Use Policy, Elsevier, vol. 77(C), pages 437-445.
    17. Thomas Glauben & Hendrik Tietje & Christoph Weiss, 2004. "Intergenerational Succession in Farm Households: Evidence from Upper Austria," Review of Economics of the Household, Springer, vol. 2(4), pages 443-462, August.
    18. Thomas Glauben & Martin Petrick & Hendrik Tietje & Christoph Weiss, 2009. "Probability and timing of succession or closure in family firms: a switching regression analysis of farm households in Germany," Applied Economics, Taylor & Francis Journals, vol. 41(1), pages 45-54.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Qiangqiang Zhang & Jiaying Tian & Jie Zheng & Nazir Muhammad Abdullahi & Xuexi Huo, 2022. "How Does Land Tenure Security Affect Farm Succession? Evidence from Apple Growers in China," Land, MDPI, vol. 11(7), pages 1-13, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pessotto, Ana Paula & Costa, Carlos & Schwinghamer, Timothy & Colle, Gabriel & Corte, Vitor Francisco Dalla, 2019. "Factors influencing intergenerational succession in family farm businesses in Brazil," Land Use Policy, Elsevier, vol. 87(C).
    2. Arends-Kuenning, Mary & Kamei, Akito & Garcias, Marcos & Romani, Gisele Esser & Assis Shikida, Pery Francisco, 2021. "Gender, education, and farm succession in Western Paraná State, Brazil," Land Use Policy, Elsevier, vol. 107(C).
    3. Daniele Cavicchioli & Danilo Bertoni & Dario Gianfranco Frisio & Roberto Pretolani, 2019. "Does the future of a farm depend on its neighbourhood? Evidence on intra-family succession among fruit and vegetable farms in Italy," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 7(1), pages 1-17, December.
    4. Morais, Manoela & Borges, João Augusto Rossi & Binotto, Erlaine, 2018. "Using the reasoned action approach to understand Brazilian successors’ intention to take over the farm," Land Use Policy, Elsevier, vol. 71(C), pages 445-452.
    5. Alessandro Corsi & Vito Frontuto & Silvia Novelli, 2021. "What Drives Farm Structural Change? An Analysis of Economic, Demographic and Succession Factors," Agriculture, MDPI, vol. 11(5), pages 1-24, May.
    6. Breitenbach, Raquel & Foguesatto, Cristian Rogério, 2023. "Should I stay or should I go? Gender differences and factors influencing family farm business succession in Rio Grande do Sul, Brazil," Land Use Policy, Elsevier, vol. 128(C).
    7. Banovic, Marija & Duesberg, Stefanie & Renwick, Alan & Keane, Mark & Bogue, Pat, 2015. "The Field: Land mobility measures as seen through the eyes of Irish farmers," 89th Annual Conference, April 13-15, 2015, Warwick University, Coventry, UK 204200, Agricultural Economics Society.
    8. 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.
    9. Wojciech Sroka & Michał Dudek & Tomasz Wojewodzic & Karol Król, 2019. "Generational Changes in Agriculture: The Influence of Farm Characteristics and Socio-Economic Factors," Agriculture, MDPI, vol. 9(12), pages 1-27, December.
    10. Morais, Manoela & Binotto, Erlaine & Borges, João Augusto Rossi, 2017. "Identifying beliefs underlying successors’ intention to take over the farm," Land Use Policy, Elsevier, vol. 68(C), pages 48-58.
    11. Dudek, Michał, 2016. "A matter of family? An analysis of determinants of farm succession in Polish agriculture," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 118(2), pages 1-7, August.
    12. Danilo Bertoni & Daniele Cavicchioli & Laure Latruffe, 2023. "Impact of business transfer on economic performance: the case of Italian family farms," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 48(2), pages 186-213.
    13. Shin, Mika W. & Loughrey, Jason & Dillon, Emma & Geoghegan, Cathal, 2022. "Economic and Social Drivers of Farm Succession in Ireland," 96th Annual Conference, April 4-6, 2022, K U Leuven, Belgium 321164, Agricultural Economics Society - AES.
    14. Manel Plana-Farran & Unai Arzubiaga & Angel Blanch, 2023. "Successors’ Future Training in Family Farms: The Impact of Intrinsic and Extrinsic Factors," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(4), pages 4216-4237, December.
    15. Ashok K. Mishra & J. Mathew Fannin & Hyunjeong Joo, 2014. "Off-Farm Work, Intensity of Government Payments, and Farm Exits: Evidence from a National Survey in the United States," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 62(2), pages 283-306, June.
    16. Zou, Baoling & Mishra, Ashok K. & Luo, Biliang, 2018. "Aging population, farm succession, and farmland usage: Evidence from rural China," Land Use Policy, Elsevier, vol. 77(C), pages 437-445.
    17. May, Daniel & Arancibia, Sara & Behrendt, Karl & Adams, John, 2019. "Preventing young farmers from leaving the farm: Investigating the effectiveness of the young farmer payment using a behavioural approach," Land Use Policy, Elsevier, vol. 82(C), pages 317-327.
    18. Stefan Mann, 2021. "Synthesizing Knowledge about Structural Change in Agriculture: The Integration of Disciplines and Aggregation Levels," Agriculture, MDPI, vol. 11(7), pages 1-14, June.
    19. 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).
    20. Bertoni, Danilo & Cavicchioli, Daniele & Latruffe, Laure, 2016. "Impact of succession on performance: The case of the Italian family farms," 149th Seminar, October 27-28, 2016, Rennes, France 245166, European Association of Agricultural Economists.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jagris:v:11:y:2021:i:12:p:1203-:d:691132. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.