The Determinants of Farm Growth, Decline and Exit in Estonia

Viira, Ants‐Hannes; Pöder, Anne; Värnik, Rando

doi:10.22004/ag.econ.232332

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2023

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“…Other socioeconomic factors affect the exit decision as well. For example, the presence of successors has a negative effect on the probability of exit (Dong et al, 2016;Viira et al, 2013). Another example of such factors is age.…”

Section: Literature Reviewmentioning

confidence: 99%

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Effect of subsidies on farms' exit decision

Neyter

Nivievskyi

2023

Agribusiness

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Farm exit plays a vital role in the overall productivity growth of the industry. However, little attention is paid to the effects of different support policies on the exit decision. In this paper, we analyze and compare two subsidy schemes—direct subsidies and tax benefits in the form of the special value‐added tax regime on the exit decision. Employing a mixed‐effect logistic model and the farm‐level panel data of Ukrainian commercial farms, we found that both subsidy schemes have a similar effect on the exit decision and reduce the probability of leaving the market. However, this effect is contemporaneous only. The subsidy a farm receives in the current year does not affect next year's exit decision. [EconLit Citations: D22, Q12, Q13, Q18].

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Section: Literature Reviewmentioning

confidence: 99%

“…Unlike the substantial amount of studies that use either survey (Mishra et al, 2014;Viira et al, 2013) or aggregated data (Breustedt & Glauben, 2007), we use farm-level data of Ukrainian farms over the period of 2008-2013. The advantage of our dataset is that it consists of commercial farms, rather than of households farms.…”

mentioning

confidence: 99%

Effect of subsidies on farms' exit decision

Neyter

Nivievskyi

2023

Agribusiness

View full text Add to dashboard Cite

show abstract

The Determinants of Farm Growth, Decline and Exit in Estonia

Cited by 1 publication

References 27 publications

Effect of subsidies on farms' exit decision

Effect of subsidies on farms' exit decision

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