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Does the future of a farm depend on its neighbourhood? Evidence on intra-family succession among fruit and vegetable farms in Italy

Author

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  • Daniele Cavicchioli

    (Università degli Studi di Milano)

  • Danilo Bertoni

    (Università degli Studi di Milano)

  • Dario Gianfranco Frisio

    (Università degli Studi di Milano)

  • Roberto Pretolani

    (Università degli Studi di Milano)

Abstract

The transfer of farm activity over time occurs through different pathways, among which the more frequent is intra-family farm succession. Thus, better information on farm succession determinants is crucial for understanding farm succession and informing appropriate sectoral policies. To date, substantial research has focused on the effect of farm, farmer and potential heir features on farm succession, while the role played by socio-economic conditions around a farm has been relatively less examined. Building on previous contributions, the present paper considers farm succession as the opposite of labour migration out of the agricultural sector. Thus, the effect of the labour market and surrounding conditions (LMSC) around a farm on its succession probability is explored. The aim of this paper is therefore to explore whether and to what extent the inclusion of LMSC variables may contribute to a better understanding of farm succession. Using data from a sample of 266 fruit and vegetable farms (gathered for informative purposes by a producers’ organization consortium), empirical evidence that LMSC variables play an important role in explaining the succession probability in these types of farms is provided. Specifically, the results show that (i) including LMSC variables in a farm succession analysis increases the explanatory power and robustness of the model estimates; (ii) LMSC variables have a non-linear effect on succession; and (iii) some explanatory variables (farmer education and farm age, specialization and dimension) are significant across various specifications, while other variables (farmer age, territorial location and distance of a farm from its producer organization) change their sign and/or significance when LMSC variables are included in the model. As a consequence, our findings suggest that LMSC variables should be included in farm succession and labour market analysis to provide a better estimate of farm succession probability.

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  • 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.
    • Handle: RePEc:spr:agfoec:v:7:y:2019:i:1:d:10.1186_s40100-019-0129-5
    DOI: 10.1186/s40100-019-0129-5
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    3. Wojciech Sroka & Piotr Sulewski & Jaroslaw Mikolajczyk & Karol Król, 2023. "Farming under Urban Pressure: Business Models and Success Factors of Peri-Urban Farms," Agriculture, MDPI, vol. 13(6), pages 1-23, June.
    4. Daniele, Bertolozzi-Caredio, 2024. "The farm succession effect on farmers’ management choices," Land Use Policy, Elsevier, vol. 137(C).
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    6. 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).
    7. 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.
    8. 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).
    9. Xin Deng & Miao Zeng & Dingde Xu & Feng Wei & Yanbin Qi, 2019. "Household Health and Cropland Abandonment in Rural China: Theoretical Mechanism and Empirical Evidence," IJERPH, MDPI, vol. 16(19), pages 1-13, September.
    10. 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).

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