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Intergenerational Succession on Family Farms: Evidence from Survey Data

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  • Glauben, Thomas
  • Tietje, Hendrik
  • Weiss, Christoph R.

Abstract

This study examines family farms and characteristics affecting farm succession. Based on a farm survey, three aspects of succession are analysed in the paper: the probability of family succession; the likelihood of having a successor designated; and the timing of succession. Large and specialised farms are more likely to be transferred within the family and to have appointed a successor. The number of family members, as well as the experience of farm operator, is also significantly related to the succession behaviour. The probabilities of succession, and of having a successor, first increase with age and then decline again. Furthermore, timing of succession is delayed as the farm holder ages, suggesting most farm operators' succession plans to be inconsistent over time. In addition, we find a significant interrelationship between the different aspects of succession indicating that decisions on family succession, the designation of a successor, as well as the timing of succession, are not separable.

Suggested Citation

  • Glauben, Thomas & Tietje, Hendrik & Weiss, Christoph R., 2002. "Intergenerational Succession on Family Farms: Evidence from Survey Data," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24918, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae02:24918
    DOI: 10.22004/ag.econ.24918
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    1. Tietje, Hendrik, 2003. "Hofnachfolgesituation in Deutschland: Eine empirische Analyse von Querschnittsdaten auf Kreisebene," FE Working Papers 0301, Christian-Albrechts-University of Kiel, Department of Food Economics and Consumption Studies.
    2. Viira, Ants-Hannes & Pöder, Anne & Värnik, Rando, 2013. "The Determinants of Farm Growth, Decline and Exit in Estonia," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 62(01), pages 1-13, February.
    3. Pessotto, Ana Paula & Costa, Carlos & Schwinghamer, Timothy & Colle, Gabriel & Corte, Vitor Francisco Dalla, 2019. "Factors influencing intergenerational succession in family farm businesses in Brazil," Land Use Policy, Elsevier, vol. 87(C).
    4. Viira, Ants-Hannes & Pöder, Anne & Värnik, Rando, 2013. "The Determinants of Farm Growth, Decline and Exit in Estonia," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 62(1).
    5. Miguel Sottomayor & Richard Tranter & Leonardo Costa, 2008. "Likelihood of Succession and Farmers’ Attitudes: Evidence from a Survey in Germany, the United Kingdom and Portugal," Working Papers de Economia (Economics Working Papers) 072008, Católica Porto Business School, Universidade Católica Portuguesa.
    6. Thia C. Hennessy & Tahir Rehman, 2007. "An Investigation into Factors Affecting the Occupational Choices of Nominated Farm Heirs in Ireland," Journal of Agricultural Economics, Wiley Blackwell, vol. 58(1), pages 61-75, February.
    7. Simeone, Mariarosaria, 2005. "The Generational Turnover in Agriculture: Theoretical Problems and Empirical Evidences," 94th Seminar, April 9-10, 2005, Ashford, UK 24434, European Association of Agricultural Economists.
    8. Rosa Maria Fanelli, 2023. "Barriers and Drivers Underpinning Newcomers in Agriculture: Evidence from Italian Census Data," Sustainability, MDPI, vol. 15(14), pages 1-17, July.
    9. Glauben, Thomas & Tietje, Hendrik & Weiss, Christoph R., 2005. "Analysing Family Farm Succession: A Probit and a Competing Risk Approach," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24699, European Association of Agricultural Economists.
    10. Thia Hennessy & Tahir Rehman, 2006. "Modelling the Impact of Decoupling on Structural Change in the Farming Sector: integrating econometric and optimisation models," Working Papers 0601, Rural Economy and Development Programme,Teagasc.
    11. Thomas Glauben & Hendrik Tietje & Christoph Weiss, 2006. "Agriculture on the move: Exploring regional differences in farm exit rates in Western Germany," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 26(1), pages 103-118, March.
    12. Foltz, Renee D. & Marshall, Maria I., 2012. "Family Business Decision-Making: Factors and Influences on Choosing a Successor," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124272, Agricultural and Applied Economics Association.
    13. Boštjan KERBLER, 2012. "Factors affecting farm succession: the case of Slovenia," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 58(6), pages 285-298.
    14. Glauben, Thomas & Tietje, Hendrik & Weiss, Christoph R., 2004. "Sussession In Agriculture: A Probit And Competing Risk Analysis," 2004 Annual meeting, August 1-4, Denver, CO 20067, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    15. Väre, Minna & Heshmati, Almas, 2004. "Perspectives on the Early Retirement Decisions of Farming Couples," IZA Discussion Papers 1342, Institute of Labor Economics (IZA).
    16. Protopop, Iuliia & Boehlje, Michael & Stockton, Matthew & Bradley, Lubben, 2016. "The Effect of the Timing of Farm Transfer Initiation on Terminal Wealth in the Business: Simulation Model," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236006, Agricultural and Applied Economics Association.
    17. Radosław Pastusiak & Michał Soliwoda & Magdalena Jasiniak & Joanna Stawska & Joanna Pawłowska-Tyszko, 2021. "Are Farms Located in Less-Favoured Areas Financially Sustainable? Empirical Evidence from Polish Farm Households," Sustainability, MDPI, vol. 13(3), pages 1-26, January.

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