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Sussession In Agriculture: A Probit And Competing Risk Analysis

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  • Glauben, Thomas
  • Tietje, Hendrik
  • Weiss, Christoph R.

Abstract

The present study examines family and farm characteristics affecting the choice and the timing of intergenerational farm transfers. Using survey data which are linked to accounting data for 272 farms in Northern Germany, we use a probit approach to examine whether specific farm and family characteristics are related to the likelihood of succession within a given period. We go beyond the existing literature by applying a competing risk approach to study the process and thus the timing, respectively of the two competing events succession or exit from farming. We find that farm characteristics significantly influence succession considerations to the extent that they affect the value of the farm for the potential successor.

Suggested Citation

  • Glauben, Thomas & Tietje, Hendrik & Weiss, Christoph R., 2004. "Sussession In Agriculture: A Probit And Competing Risk Analysis," 2004 Annual meeting, August 1-4, Denver, CO 20067, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea04:20067
    DOI: 10.22004/ag.econ.20067
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    References listed on IDEAS

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    2. 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.
    3. Miljkovic, Dragan, 2000. "Optimal timing in the problem of family farm transfer from parent to child: an option value approach," Journal of Development Economics, Elsevier, vol. 61(2), pages 543-552, April.
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