The decline of part-time farming in Europe: an empirical analysis of trends and determinants based on Eurostat panel data

Shahzad, Muhammad Abid; Fischer, Christian

doi:10.1080/00036846.2022.2036687

Cited by 5 publications

(1 citation statement)

References 49 publications

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“…Therefore, potential liquidity constraints may be important for farm survival in the long term, but the analysis of this would require a large balanced panel data set. Consequently, it is important for emerging market literature, policy and practice to investigate the relationship between liquidity constraints, farm growth and farm survival in relation to family farm succession and the declining role of part-time farming (Shahzad and Fischer, 2022). Different financial mechanisms, financial instruments and micro-financial institutions may be important means of mitigating potential farm liquidity constraints on the farm's growth and survival (Anwar et al , 2020).…”

Section: Discussionmentioning

confidence: 99%

Financial constraints and nonlinearity of farm size growth

Bojnec

Fertő

2023

JAMR

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PurposeThis article aims to investigate the financial constraints and nonlinearity of farm size growth.Design/methodology/approachFarm size growth is measured with land, labor and output using data from the Farm Accountancy Data Network (FADN) for Hungary and Slovenia. A dynamic panel model is applied to assess financial constraints and nonlinearity of farm size growth.FindingsResults show that, except for land in Slovenia and output in Hungary, liquidity constraints are less important for farm size growth than endogenous factors based on farm size growth expectations and steady farm size restructuring. Smaller farms are growing faster than larger ones. The hypothesis that a higher level of subsidies would increase farm size is not supported for Hungary. When farms reach a certain size, the land area of the largest farms increases. Farm debts in Hungary are linked with land growth and in Slovenia with output growth.Research limitations/implicationsFurther research on the impact of liquidity constraints and subsidies can be conducted at a disaggregate farm-type level to examine whether there is variability in the underlying interlinkages at the farm-type specialization level.Practical implicationsThe implication that farm size growth is dependent on initial size and that smaller farms are growing faster than bigger ones indicates that it is not necessary to favor the fastest growing smaller farms thus supports the application of a non-discriminatory farm size policy for observing farm size structural changes.Originality/valueThe dynamic panel econometric model that incorporates cash flow as a measure of financial constraints provides insight into farm size growth in cross-country comparison in relation to potential farm liquidity constraints, farm debt and the nonlinearity of farm size, which information is of relevance to policy makers and practitioners.

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Section: Discussionmentioning

confidence: 99%