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Modeling Succession on Irish Dairy Farms

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  • Hennessy, Thia C.

Abstract

This paper examines intergenerational succession on Irish dairy farms. The factors that influence the decision to enter dairying farming are examined using a binary choice logit model. Reasons that are frequently published in the popular farming press as being an obstacle to intergenerational succession are analysed and the significance of their effect is quantified. Results show that the level of education of the heir is the most significant factor in the succession decision. Heir's with third level education are 30% less likely to enter dairy farming than their second level only educated counterparts. The sizes of milk quota and income that are associated with high probabilities of succession are identified.

Suggested Citation

  • Hennessy, Thia C., 2002. "Modeling Succession on Irish Dairy Farms," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24953, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae02:24953
    DOI: 10.22004/ag.econ.24953
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    References listed on IDEAS

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    1. H. Fred Gale, 1993. "Why Did the Number of Young Farm Entrants Decline?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(1), pages 138-146.
    2. Ayal Kimhi & Noga Nachlieli, 2001. "Intergenerational Succession on Israeli Family Farms," Journal of Agricultural Economics, Wiley Blackwell, vol. 52(2), pages 42-58, May.
    3. repec:cdl:agrebk:677080 is not listed on IDEAS
    4. Jeffrey M. Perloff, 1991. "The Impact of Wage Differentials on Choosing to Work in Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(3), pages 671-680.
    5. Gardner, Bruce L, 1992. "Changing Economic Perspectives on the Farm Problem," Journal of Economic Literature, American Economic Association, vol. 30(1), pages 62-101, March.
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    Cited by:

    1. Thomas Glauben & Martin Petrick & Hendrik Tietje & Christoph Weiss, 2009. "Probability and timing of succession or closure in family firms: a switching regression analysis of farm households in Germany," Applied Economics, Taylor & Francis Journals, vol. 41(1), pages 45-54.
    2. Minna Väre, 2006. "Spousal Effect and Timing of Retirement," Journal of Agricultural Economics, Wiley Blackwell, vol. 57(1), pages 65-80, March.

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