TY - JOUR
T1 - Effect of agricultural policy on succession decisions of farm households
AU - Mishra, Ashok K.
AU - El-Osta, Hisham S.
N1 - Funding Information:
Acknowledgement The authors would like to thank two anonymous referees and the editor for helpful discussion and comments. This project was supported by the USDA Cooperative State Research Education & Extension Service, Hatch project # 0212495 and Louisiana State University Experiment Station project # LAB 93872.
Copyright:
Copyright 2008 Elsevier B.V., All rights reserved.
PY - 2008
Y1 - 2008
N2 - Policymakers, economists, and researchers have recently been interested in assessing the impact of farm program payments on the growth and survival of farm businesses. Planning for succession is an integral part of managing a farm business. This study uses farm-level data to investigate the impact of government farm policy and farm growth on both succession decisions and the likelihood of intra-family transfers of the farm business. Results indicate that succession decisions are significantly influenced by government farm policy, farm wealth, age, and educational attainment of current farm operators. Results show that off-farm work by operators and spouses and regional location are positively correlated with non-family farm succession decisions. On the other hand, farm ownership, educational attainment, and marital status of the operator increase the likelihood of family-based succession decisions. However, in the presence of retirement income from other sources such as pension, parents are less likely to have a family successor.
AB - Policymakers, economists, and researchers have recently been interested in assessing the impact of farm program payments on the growth and survival of farm businesses. Planning for succession is an integral part of managing a farm business. This study uses farm-level data to investigate the impact of government farm policy and farm growth on both succession decisions and the likelihood of intra-family transfers of the farm business. Results indicate that succession decisions are significantly influenced by government farm policy, farm wealth, age, and educational attainment of current farm operators. Results show that off-farm work by operators and spouses and regional location are positively correlated with non-family farm succession decisions. On the other hand, farm ownership, educational attainment, and marital status of the operator increase the likelihood of family-based succession decisions. However, in the presence of retirement income from other sources such as pension, parents are less likely to have a family successor.
KW - Agricultural Resource Management Survey
KW - Agricultural policy
KW - Conditional logit model
KW - Farm growth
KW - Intergenerational succession
KW - Off-farm labor participation
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U2 - 10.1007/s11150-008-9032-7
DO - 10.1007/s11150-008-9032-7
M3 - Article
AN - SCOPUS:50249172217
SN - 1569-5239
VL - 6
SP - 285
EP - 307
JO - Review of Economics of the Household
JF - Review of Economics of the Household
IS - 3
ER -