Intergenerational Succession in Farm Households: Evidence from Upper Austria

Abstract

intergenerational succession, survey data, econometric analysis,

The irrelevance of stated plans in predicting farm successions in Finland

“…The results hold together with earlier findings of e.g. Glauben et al (2004) that the probability of succession plans first increases by farmers' age. Similarly, Pietola et al (2003) have found succession to be more likely in northern parts of the country.…”

“…The results of Calus et al (2008) support the theory that higher total farm assets should result in a higher intention to transfer the farm to next generation. Here, total farm assets and farm debt are used to indicate the capital The production line is also assumed to affect succession probability and the timing of succession (Stiglbauer and Weiss 2000, Glauben et al 2004, Hennessy 2002. For example, in the case of a potential successor working on the farm before succession, a successor may be more important on a labour intensive dairy farm than on other types of farms (Pesquin et al 1999), and thus also the succession decision is made earlier.…”

“…Similar binary models have been earlier used for example by Kimhi and Bollman (1999), Kimhi and Nachlieli (2001), and Glauben et al (2004) when analysing farmers' succession and exit decisions. The data are annual surveys and accounts on farms in the Farm Accountancy Data Network (FADN).…”

“…In these studies, information on the farm operator's age in different time periods is used to identify farm succession to have taken place. More common approach has been to ask farm operators in a farm survey ex-ante about the probability and timing of family succession and whether a farm successor is already determined (Kimhi and Lopez 1999, Kimhi and Nachlieli 2001, Glauben et al 2004, Hennessy 2002, Mishra et al 2004.…”

“…According to Diamond and Hausmann (1984), planned timing of retirement may change over time when individual observes new information. Also Glauben et al (2004) have found inconsistency in farm operator's succession plans over time: "the extent to which farm operator's plans materialise might be related to farm and family characteristics, thus introducing bias to farm surveys results" (Glauben et al 2004).…”