Regional Differentiation and Farm Exit: A Hierarchical Model for Tuscany

Abstract

We analyse the exit behaviour of Tuscan farms during the period 2000-2007 both at the farm and the territorial level. The study combines data from the 2000 National Census of Agriculture and three waves of the 'Farm Structure Surveys'. The exit probability of the resulting sample, composed of 3,187 farms, is estimated through a Bayesian hierarchical probit model. Our results show that exits reflect the size and type of holdings. Likelihood of exit is higher in areas of higher population density that are not classified as 'urban' areas.

Saying Sayonara to the Farm: Hierarchical Bayesian Modeling of Farm Exits in Japan

“…Data on farm exits are available at both household and aggregated levels. The distinction between the information provided by data at different levels is discussed in Landi et al (2016). Household level datasets are often only available over small geographic areas.…”

“…On the other hand, lower level data contain more information on the structure of individual farms. To address these concerns and account for variation at both the aggregate (group) and household (unit) levels, Landi et al (2016) used a hierarchical model that includes group level predictors.…”

“…The hierarchical models differ from a single-level model in several ways (Landi et al, 2016). Instead of a multilevel model, one might consider indicators for each prefecture, town-level predictors, and prefecture-level predictors in a single regression.…”

Heterogeneous impacts of neighbouring farm size on the decision to exit: evidence from Brittany

“…Some studies in the literature have already used panel data to study farmer decisions to exit farming (see Landi et al (2016) for a recent example). However, to the best of our knowledge, we are the first to investigate spatial interactions between farms both using panel data and controlling for unobserved heterogeneity.…”

The Political Power of Large‐Scale Farmers and Land Inequality: Some Evidence from Poland

“…In order to support policy‐making by providing research‐based evidence in this area, in recent years, the emphasis (especially in the economics literature) has been on investigating this issue with the help of statistical and econometric analyses. The available studies evaluate changes in farm size distribution in relation to various policy instruments as well as to economic and technological factors which are likely to affect economies of scale in agricultural production or determine off‐farm opportunities (see e.g., Breustedt and Glauben ; Piet et al ; Landi et al ).…”