Retirement farming or sustainable growth – land transfer choices for farmers without a successor

Abstract

Ireland's agriculture is characterised by an ageing farmer population and small average farm sizes. These structural issues are shared by a number of European countries and have been identified as barriers to sustainable growth in the sector. While farms with an identified successor usually enter a path of expansion and growth, farms without a successor at some point follow a route of winding down and extensification. Such retirement farming could potentially become an issue for food security and sustainable land use. Understanding the retirement decisions of farmers without a successor is key to address this issue. To this end a survey was conducted with Irish farmers including questions surrounding succession and retirement. About half of the surveyed farmers did not have a successor and two thirds of those did not intend to fully retire from active farming in the future. A logistic regression analysis of the collected data showed that placing a high value on family tradition in farming and only receiving a state pension had a negative effect on the intention to retire, while being aware of changing pension ages had a positive effect. A follow up qualitative study explored the perceptions of farmers without a successor regarding various land transfer options. The participants mainly anticipated negative consequences arising from selling the farm and full retirement such as the loss of land and the end of the farming activity. Other options such as the long-term leasing of part of the land or entering into a partnership with a younger farmer were regarded as having more positive consequences. These included a lowering of the workload, allowing a continuing involvement in farm work, and the ability to be able to stay on the farm.

Retired Farmers and New Land Users: How Relations to Land and People Influence Farmers' Land Transfer Decisions

“…When farming supports values linked to identity, status and social and cultural capital, lack of a successor could threaten these values and prevent transfer of land to someone outside the family (Duesberg et al . ). Thus, it is relevant to explore whether the values that guide active farmers also play a role in their decision making on leasing or selling their land to someone outside the family.…”

“…According to Duesberg et al . (), one reason could be their attachment to farm work. In some cases, this makes succession to the next generation troublesome, as the children are middle‐aged before the older generation considers handing over the farm.…”

“…Similarly, Duesberg et al . () recognised that many farmers with children who are currently uninterested in taking over the family farm continue to hope that they will change their mind. In such uncertain situations, leasing out the land could be a temporary solution that keeps different options open in the future.…”

“…Duesberg et al . () identified the significance of financial security in encouraging older farmers to retire or transfer land in Ireland. In the present study, we found that having a good relationship was even more important than money for some interviewees.…”

Research on the Relationship between Price Mechanism and Short-Term Behavior in Chinese Farmland Trusteeships

“…It is obvious, based on results from studies by Chinese and foreign academics, that foreign academics place more of their focus on the effects that tillage [27], cultivation [28], stakeholders' knowledge [29], biofuels [30], and sustainable development ideas [31] have on sustainable land utilization behaviors than on problems with China's present land policy. While Chinese academics have noted that economic factors such as unsound contracts, high risk of breach of contract, and the instability of management rights are primary reasons behind the use of short-term contracts and short-term behaviors in land trusteeship in China, no effective contract system has yet been developed.…”