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Who exits from a reforming sector? The case of dairy farmers in Israel

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  • Kimhi, Ayal
  • Siminovich, Ortal

Abstract

We analyze the responses of dairy farmers in Israel to an institutional reform that allowed, for the first time, for buying and selling of production quotas, and provided financial incentives for such quota trading. Larger producers were less likely to sell quota and exit but also less likely to expand, indicating that the incentives were most effective for smaller farms who had to choose between exit and expansion. The existence of a successor reduced the exit probability, while farmers working off the farm were more likely to expand by buying additional quota.

Suggested Citation

  • Kimhi, Ayal & Siminovich, Ortal, 2018. "Who exits from a reforming sector? The case of dairy farmers in Israel," Discussion Papers 290058, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
    • Handle: RePEc:ags:huaedp:290058
    DOI: 10.22004/ag.econ.290058
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    File URL: https://ageconsearch.umn.edu/record/290058/files/5.18%20Who%20exits%20from%20a%20reforming-full%20papar.pdf
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    Cited by:

    1. Ayal Kimhi & Nitzan Tzur-Ilan, 2021. "Structural Changes in Israeli Family Farms: Long-Run Trends in the Farm Size Distribution and the Role of Part-Time Farming," Agriculture, MDPI, vol. 11(6), pages 1-15, June.

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    Keywords

    Agricultural and Food Policy; Livestock Production/Industries;

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