Farm Succession and Retirement: Some International Comparisons

Abstract

The increasing age of farmers and the reluctance to transfer management from the owning generation to the successor generation has been well documented by several studies. In this article we review the literature relating to the succession of farm businesses. Drawing on data from the international FARMTRANSFERS project, we explore attitudes toward retirement and also rates and patterns of succession in several contrasting countries and states in the United States. Lastly, we (0)1752 585913 discuss the implications of the research and provide recommendations for public policies that would enhance the opportunities for successors to succeed in the continuation of the farm family business.

Cultivating Narratives: Cultivating Successors

“…The oral history data also suggest that the process and types of successors may be not as clean as suggested by Lobley, Baker and Whitehead (2010 Others defy the categorization suggested by Lobley, Baker, and Whitehead (2010). The literature on succession seems to assume a single successor, but in one case in NW Ohio, there are multiple partners who eventually will take over:…”

“…One thread of that research furthers understanding of farm succession by categorizing the outcomes of succession and/or the process. An excellent example of that approach is Lobley, Baker, and Whitehead (2010).…”

“…Many have noted the resilience of family farms, even in the face of forces that should eliminate them (Friedmann, 1978;Mann & Dickinson, 1978;Vandergeest, 1988). Some, like Lobley, Baker, and Whitehead (2010), see family farms as particularly important in the face of globalization and world markets to preserve local food security. Although they do not investigate it, they suggest that the process and type of successor may play a role in the ability of future family farms to retain their resiliency in the face of these challenges.…”

“…They love, I believe they love everything they do" (Tom Norton). A reluctance to retire and transfer control is commonly cited in research (Lobley et al, 2010;Bjuggren & Sund, 2001;Salamon, 1985). That is evident with farmers in our sample, too:…”

The Future of Preserved Farmland: Ownership Succession in Three Mid-Atlantic States

“…The timing of, and the extent to which, managerial control over the farm will be transferred to a named successor remains an open area for further inquiry. The idea that a successor may be named but allowed little managerial authority has been identified as a possible impediment to intergenerational transfers of farms (Gasson & Errington, 1993;Lobley, Baker & Whitehead, 2010). Gasson and Errington (1993) dub this a "farmer's boy" situation, whereby the successor provides little more than hired labor to the operation, does not gain management experience, and essentially accepts the situation in anticipation of future farm ownership.…”