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Farming Exit Decision by Age Group: Analysis of Tobacco Buyout Impact in Kentucky

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  • Pushkarskaya, Helen
  • Vedenov, Dmitry

Abstract

This article analyzes factors that affected the decision to exit tobacco production in the wake of the tobacco buyout program using the data collected through a survey of Kentucky tobacco farmers. Using the Heuristic logistic regression model, we find that the decision to exit tobacco growing was affected by efficiency considerations, availability of off-farm employment, and exit barriers. Availability of off-farm employment had the strongest effect on farmers younger than 46, while the effect of variables measuring efficiency and exit barriers seemed to be more uniform across age groups. Based on the results we suggest several policy interventions.

Suggested Citation

  • Pushkarskaya, Helen & Vedenov, Dmitry, 2009. "Farming Exit Decision by Age Group: Analysis of Tobacco Buyout Impact in Kentucky," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 41(3), pages 653-662, December.
    • Handle: RePEc:cup:jagaec:v:41:y:2009:i:03:p:653-662_00
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    Cited by:

    1. Nyaupane, Narayan P. & Gillespie, Jeffrey M. & Paudel, Krishna P., 2012. "Economic Impacts of Adoption of Best Management Practices by Crawfish Producers: The Role of the Environmental Quality Incentives Program," Agricultural and Resource Economics Review, Cambridge University Press, vol. 41(2), pages 247-259, August.
    2. Fertő, Imre & Bojnec, Štefan & Iwasaki, Ichiro & Shida, Yoshisada, 2024. "Why do corporate farms survive in Central and Eastern Europe?," Agricultural Systems, Elsevier, vol. 218(C).
    3. Rebecca E. Shelton & Hallie Eakin, 2021. "Social and cultural bonds left to “the mercy of the winds:” an agricultural transition," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 38(3), pages 693-708, September.
    4. Ihli, Hanna Julia & Maart, Syster Christin & Musshoff, Oliver, 2012. "Investment and Disinvestment in Irrigation Technology – An Experimental Analysis of Farmers’ Decision Behavior –," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124532, Agricultural and Applied Economics Association.
    5. Sarah Ann Wheeler & Alec Zuo, 2017. "The impact of drought and water scarcity on irrigator farm exit intentions in the Murray–Darling Basin," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 61(3), pages 404-421, July.
    6. Provost, Jennifer & Rosero, Gabriel & Brümmer, Bernhard & Schlecht, Eva, 2022. "To sell, not to sell, or to quit: Exploring milk producers’ approaches after a supply chain disruption in Northwest Cameroon," World Development, Elsevier, vol. 150(C).
    7. Kuo-Liang Chang & George Langelett & Andrew Waugh, 2011. "Health, Health Insurance, and Decision to Exit from Farming," Journal of Family and Economic Issues, Springer, vol. 32(2), pages 356-372, June.
    8. Sarah Ann Wheeler & Ying Xu & Alec Zuo, 2020. "Modelling the climate, water and socio-economic drivers of farmer exit in the Murray-Darling Basin," Climatic Change, Springer, vol. 158(3), pages 551-574, February.
    9. Ferjani, Ali & Zimmermann, Albert & Roesch, Andreas, 2015. "Determining Factors of Farm Exit in Agriculture in Switzerland," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 16(1), pages 1-14.
    10. Ihli, Hanna J. & Maart-Noelck, Syster C. & Musshoff, Oliver, 2014. "Does timing matter? A real options experiment to farmers’ investment and disinvestment behaviours," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 58(3), July.

    More about this item

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J00 - Labor and Demographic Economics - - General - - - General
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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