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Determinants of farm exit: A comparison between Europe and United States

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  • Mishra, Ashok K.
  • Raggi, Meri
  • Viaggi, Davide

Abstract

In the last three decades, European Union (EU) agriculture has been characterized by major exit of farming households from agriculture. In some areas the share of exit has been as high as 40%. Similar pattern has also been observed in the United States (US), where the exit rates are about 9-10 percent per year. Understanding the exit behavior is a key to the future farm structure, management of abandoned land, depopulation of rural areas, and agricultural policy, including government program payments. The main objective of this paper is to review the theoretical background and empirically estimate the determinants of exit decisions through a comparative econometric analysis in the US and the EU.

Suggested Citation

  • Mishra, Ashok K. & Raggi, Meri & Viaggi, Davide, 2010. "Determinants of farm exit: A comparison between Europe and United States," 114th Seminar, April 15-16, 2010, Berlin, Germany 61075, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa114:61075
    DOI: 10.22004/ag.econ.61075
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    Cited by:

    1. Bartolini, Fabio & Viaggi, Davide, 2011. "Factors Affecting the Impact of CAP Scenarios on Farm Structure: An Analysis Based on Stated Intentions," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114244, European Association of Agricultural Economists.
    2. Lefebvre, Marianne & Raggi, Meri & Gomez Y Paloma, Sergio & Viaggi, Davide, 2014. "An analysis of the intention-realisation discrepancy in EU farmers’ land investment decisions," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 95(01), pages 51-75, March.
    3. Landi, Chiara & Stefani, Gianluca & Rocchi, Benedetto & Lombardi, Ginevra V. & Giampaolo, Sabina, 2013. "Determinants of Structural Change in the agricultural sector: An Empirical Analysis of Farm Exit in Tuscany," 2013 Second Congress, June 6-7, 2013, Parma, Italy 149893, Italian Association of Agricultural and Applied Economics (AIEAA).
    4. Kitenge, Erick, 2022. "Determinants of entries into and exits from the US farming sector," The Quarterly Review of Economics and Finance, Elsevier, vol. 85(C), pages 379-385.
    5. Sardaro, Ruggiero & La Sala, Piermichele & De Pascale, Gianluigi & Faccilongo, Nicola, 2021. "The conservation of cultural heritage in rural areas: Stakeholder preferences regarding historical rural buildings in Apulia, southern Italy," Land Use Policy, Elsevier, vol. 109(C).
    6. Ana Claudia Sant'Anna & Ani L. Katchova, 2023. "How economic conditions changed the number of U.S. Farms, 1960–1988: A replication and extension of Gale (1990) to midsize farms in the United States and abroad," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(3), pages 1400-1426, September.
    7. He, Yafen & Xie, Hualin & Peng, Chaozhong, 2020. "Analyzing the behavioural mechanism of farmland abandonment in the hilly mountainous areas in China from the perspective of farming household diversity," Land Use Policy, Elsevier, vol. 99(C).
    8. Chiara Landi & Gianluca Stefani & Benedetto Rocchi & Ginevra Virginia Lombardi & Sabina Giampaolo, 2016. "Regional Differentiation and Farm Exit: A Hierarchical Model for Tuscany," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(1), pages 208-230, February.
    9. Suresh Chaudhary & Yukuan Wang & Amod Mani Dixit & Narendra Raj Khanal & Pei Xu & Bin Fu & Kun Yan & Qin Liu & Yafeng Lu & Ming Li, 2020. "A Synopsis of Farmland Abandonment and Its Driving Factors in Nepal," Land, MDPI, vol. 9(3), pages 1-22, March.

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    Keywords

    Agricultural and Food Policy; Farm Management; Land Economics/Use;
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