Timing and type of exit from farming: farmers' early retirement programmes in Finland

Pietola, Kyösti

doi:10.1093/erae/30.1.99

Cited by 91 publications

(91 citation statements)

References 17 publications

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“…Succession on irish farms was the subject of two separate studies by hennessey, who was primarily interested in the effect of the economic and demographic factors, as well as the factors of the farm on the career decisions of the potential successors (see hennessey 2002, 2004). Pietola et al (2003) studied Finnish farms over a 6-year period and determined how the agricultural market and policy, the short-term early-retirement programs, and the characteristics of the farm and owner affect the older owners' decisions on early retirement and how to operate the farm after this. Väre et al (2005) examined farms in Finland and also determined the effect of the characteristics of the farm and farm family on the planned (anticipated) and actual succession.…”

Section: Factors In Studies From the Eu Countriesmentioning

confidence: 99%

Factors affecting farm succession: the case of Slovenia

Kerbler¹

2012

AGR ECON-CZECH

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285Farms are most often under the family ownership (as family farms) and they are therefore the only part of society that must ensure its own social and professional reproduction. on family farms, the supervision over the farm management and ownership is transferred within the family between generations (gasson and Errington 1993). Succession on a farm is therefore the basis for a farm's existence and development. According to Laband and Lantz (1983), the succession on family farms is five times more frequent than in other professions and it represents the best example of the intergenerational transfer of physical and human capital. During the socialization process, a potential successor on a farm receives a detailed insight into the work of the farm owner and the farming lifestyle, a direct experience, and an intergenerational transfer of knowledge, and at the same time he/she develops respect for all of this, especially for the land as a primary resource for making a living on the farm. Therefore, according to Laband and Lentz (1983), the transfer of human capital between generations in the same family also represents its enrichment, and at the same time, this increases the value of physical capital -both its actual value as well as the awareness of its value. in order for this to happen, basic conditions must be fulfilled; specifically, that the takeover of the farm and the continuation of farming actually take place, and that the transfer of the farm to the successor take place in a timely manner.one of the major problems of agriculture in developed countries is a reduction in the number of farm takeovers or the transfer of farms to successors. The European Union is trying to stop these negative trends through certain measures. on the one hand, this involves support for young farmers to take over farms, carried out in the form of one-time, non-repayable financial assistance for an easier takeover and a structural adaptation of the farm after takeover; on the other hand, this involves the support for the early retirement of farmers, which is carried out in the form of annual annuities to elderly farmers that stop engaging in the profit-oriented agricultural and forestry activities on the farm as a result of transferring the farm to a successor.As a member state of the European Union, Slovenia is entitled to funds under these measures. Promoting the takeover of farms and their timely transfer is especially important in Slovenia because the state of succession and the age structure of owners on Slovenian farms is very worrisome: according to the official statistics, only 23% of farms have a chosen successor, the average age of owners is over 56, and the share of owners over 55 is more than 55% and increasing. nonetheless, the EU measures, which are primarily based on financial incentives, are too small to keep young people farming in Slovenia and to ensure the timely transfer of farms. Farm succession is very complex and it is therefore hypothesized that economic factors are not the only factors that affect far...

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Section: Factors In Studies From the Eu Countriesmentioning

confidence: 99%

Factors affecting farm succession: the case of Slovenia

Kerbler¹

2012

AGR ECON-CZECH

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“…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. Based on the estimated univariate models, farm assets and debt were not assumed to have an influence on actual succession probability but on the probability of having a stated succession plan, and were not included in the model.…”

Section: Parameter Estimatesmentioning

confidence: 90%

“…Pietola et al 2003). The farms are divided according to the EU subsidy region to those located in the southern (coded as A and B subsidy area in the CAP) and the northern parts (C subsidy areas) of the country.…”

Section: Datamentioning

confidence: 99%

The irrelevance of stated plans in predicting farm successions in Finland

Väre¹,

Pietola²,

Weiss³

2008

AFSci

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This study estimates the value of farmers' stated succession plans in predicting revealed succession decisions. The stated succession plan exists when a farmer answers in a survey questionnaire that the farm is going to be transferred to a new entrant within a five year period. The succession is revealed when the farm is transferred to a successor. The stated and revealed behaviour is estimated as a recursive Binomial-ProbitModel, which accounts for censoring of the decision variables and controls for a potential correlation between the estimating equations. The results suggest that the succession plans, as stated by elderly farmers in the questionnaires, do not provide information that is significant and valuable in predicting the true, revealed successions, once certain farm and farmer characteristics are controlled for.

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“…The role played by gender in investment decisions is unclear, but this variable is commonly included in studies of farmer behavior or attitudes (Wilson et al, 2013;Inwood, 2008). Other things equal, farmers with more education are expected to invest more and be more innovative (Inwood, 2008;Fernandez-Cornejo and Daberkow, 2002;Prokopy et al, 2008;Skaggs and Samani, 2005), while older farmers are expected to invest less because of shortened time horizons (Kimhi and Bollman, 1999;Kimhi and Nachieli, 2001;Pietola et al, 2003;Lambert et al, 2007). If a farmer has a succession plan, however, then he or she may invest more, even at an advanced age (Kimhi, 1994;Inwood, 2008).…”

Section: Description Of Regression Analysis and Variablesmentioning

confidence: 99%

Are preserved farms actively engaged in agriculture and conservation?

et al. 2015

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Abstract:This study addresses the question of whether farms enrolled in land preservation programs are actively engaged in agricultural or conservation activities. Data are drawn from an original survey administered to preserved farm owners in the states of New Jersey, Maryland, and Delaware in 2011. "Actively engaged" is defined as investment in conservation projects, buildings, equipment, or irrigation since the land was preserved. Affirmative answers to the survey's investment questions range from a low of 19% for irrigation to a high of 69% for equipment. Special attention was paid to differences between lifestyle farmers and small and large commercial farmers, which are classified using the USDA typology developed in 2000. Regression analysis estimates differences in investment behavior across these groups as well as farm tenure categories, controlling for farm size, program/ state location, and demographic variables. Only owners who employ tenants or managers exclusively on their land were found to invest significantly less than the largest professional farmers, and they did so across all four types of investment. This study's findings support preservation goals articulated by legislators and program administrators, because (1) agricultural and land stewardship investments appear to be widespread on preserved farms, partly due to administrators' preference for larger parcels, (2) there is no evidence that "hobby farmers" are disproportionately attracted to farmland preservation programs -in fact the opposite seems to be true -while those that exist in our sample behave similarly to the largest commercial farmers, (3) although tenant farming is associated in the sample with lower rates of investment, it is less common on preserved farms than on all farms in the three study states. The matter of land tenure, highlighted in this as in other studies, has not yet become a primary focus of either farm-behavioral research or state agricultural policy. 2 Es s E k s E t a l .

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Timing and type of exit from farming: farmers' early retirement programmes in Finland

Cited by 91 publications

References 17 publications

Factors affecting farm succession: the case of Slovenia

Factors affecting farm succession: the case of Slovenia

The irrelevance of stated plans in predicting farm successions in Finland

Are preserved farms actively engaged in agriculture and conservation?

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