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Economic and Social Drivers of Farm Succession in Ireland

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  • Shin, Mika W.
  • Loughrey, Jason
  • Dillon, Emma
  • Geoghegan, Cathal

Abstract

A decreasing number of young farmers and the ageing of the farmer population is a matter of concern for the Irish and European agricultural sectors. The process of generational renewal, or farm succession takes place gradually over the lifecycle and is not only based on rational economic choice, but is also dependent on relevant social factors. To understand the process of farm succession, we seek to identify relevant drivers and barriers through quantitative analysis with panel data containing information about both the economic and social characteristics of Irish farms and farm holders. Preliminary results show a positive relationship between farm size and the probability of succession in the case of dairy farms. Farm investment also has a strong association with succession, reflecting optimism with regard to the future of the farm business. Demographic factors, particularly the absence of younger household members and instances of farmers living alone are identified as potential barriers to succession. Workload is also confirmed as being negatively related to farm succession. The results confirm the importance of social factors in the succession process and suggest the necessity to mitigate social hardship and to take measures that assist both older and younger farmers in solving the farm succession problem.

Suggested Citation

  • Shin, Mika W. & Loughrey, Jason & Dillon, Emma & Geoghegan, Cathal, 2022. "Economic and Social Drivers of Farm Succession in Ireland," 96th Annual Conference, April 4-6, 2022, K U Leuven, Belgium 321164, Agricultural Economics Society - AES.
    • Handle: RePEc:ags:aesc22:321164
    DOI: 10.22004/ag.econ.321164
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    References listed on IDEAS

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    Keywords

    Farm Management; Institutional and Behavioral Economics;

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