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Structural Change in Rural Croatia—Is Early Retirement An Option?

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  • Thomas Fellmann
  • Judith Möllers

Abstract

Structural change in agriculture, although often connected with social hardship of uncompetitive small-scale farms and a loss of tradition, is inevitable. It is the basis for successful rural development. We discuss whether early retirement schemes (ERS) are a good value for public money in terms of the necessary adaptations of the farming sector in the course of economic development, and if they are an option for the EU candidate country Croatia. In Croatia, the small scale farm structure leads to widely uncompetitive farms. A study on farmers’ socioeconomic situation as well as actual and expected reactions to policy support is based on results of a household survey. The sample includes farm households from two Croatian regions: The peri-urban Zagreb county and the typically rural region of Bjelovar-Bilogora. Despite unfavourable economic conditions and insufficient farm incomes, rural people are often reluctant to give up farming. We present results on the age structure, income and production structure of farms and farmers’ likely reactions on ERS. We discuss incentives which push farmers to leave the farming sector and ask in which direction farm families plan their future. We conclude with a synthesis of the theoretical advantages and disadvantages of early retirement schemes and link them with possible outcomes in the Croatian case. Copyright International Atlantic Economic Society 2009

Suggested Citation

  • Thomas Fellmann & Judith Möllers, 2009. "Structural Change in Rural Croatia—Is Early Retirement An Option?," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 15(1), pages 125-137, February.
    • Handle: RePEc:kap:iaecre:v:15:y:2009:i:1:p:125-137:10.1007/s11294-008-9188-1
    DOI: 10.1007/s11294-008-9188-1
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    Cited by:

    1. Buchenrieder, Gertrud & Hanf, Jon Henrich & Pieniadz, Agata, 2009. "20 years of transition in the agri-food sector," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 58(07), pages 1-9, October.
    2. Möllers, Judith & Zier, Patrick & Frohberg, Klaus & Buchenrieder, Gertrud & Bojnec, Štefan, 2009. "Croatia's EU accession: socio-economic assessment of farm households and policy recommendations," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 48, number 53665.
    3. Judith Möllers & Patrick Zier & Gertrud Buchenrieder, 2008. "Expectations, Strategies and Prospects of Farmers in View of Croatia’s Pending EU Accession," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 14(4), pages 381-394, November.
    4. World Bank, 2011. "Romania : Considering Options for Extending Social Protection Coverage to Elderly Farmers," World Bank Publications - Reports 12583, The World Bank Group.
    5. Cécile Détang-Dessendre & Jean-Noel Depeyrot & Laurent Piet, 2021. "CAP and agricultural employment: a European outlook [PAC et emploi agricole : un regard européen]," Post-Print hal-04395194, HAL.

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    More about this item

    Keywords

    Early retirement; Farm structures; Rural development; Croatia; Q12; Q18;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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