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EU farmers' intentions to invest in 2014-2020: complementarity between asset classes

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  • Lefebvre, Marianne
  • Gomez y Paloma, Sergio
  • Viaggi, Davide

Abstract

This article aims to analyse the determinants of EU farmers' intentions to invest in the period 2014-2020. It analysed data of a survey of 780 farmers interviewed in spring 2013, covering 6 EU countries (Czech Republic, Germany, Spain, France, Italy, Poland) and four different farm types (arable crops, livestock, perennial crops and mixed farms). A multivariate probit model is used in order to determine the factors explaining the willingness to invest or not to invest in various farm asset classes (land, building, machinery, training) by the surveyed farmers. The multivariate probit allows taking into account the possibility of simultaneous investments and the potential correlations among these investment decisions. We find that investments in different asset classes are complementary. Farmers willing to invest in one asset class are also willing to invest in other asset classes, after controlling for observable characteristics such as farm size, specialization, farmer's age. This paper contributes to the limited literature on farmers' investment decisions at EU-level. Future versions of the paper will include the marginal effects, as well as improved justification of the methodology and interpretation of the results.

Suggested Citation

  • Lefebvre, Marianne & Gomez y Paloma, Sergio & Viaggi, Davide, 2014. "EU farmers' intentions to invest in 2014-2020: complementarity between asset classes," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182737, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae14:182737
    DOI: 10.22004/ag.econ.182737
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    2. Myslym Osmani & Arben Kambo, 2019. "Small-Scale Apple Farmers' Willingness to Invest - the Case of Korça Region Farmers in Albania," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 67(1), pages 309-323.

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    More about this item

    Keywords

    Farm Management; Labor and Human Capital;

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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