IDEAS home Printed from https://ideas.repec.org/p/ags/ifma13/345713.html
   My bibliography  Save this paper

PR - Characteristics, Intentions And Expectations Of New Entrant Dairy Farmers Entering The Irish Dairy Industry Through The New Entrant Scheme

Author

Listed:
  • McDonald, Roberta
  • Pierce, Karina
  • Fealy, Reamonn
  • Horan, Brendan

Abstract

As part of the gradual expansion and abolition of EU milk quotas, the Irish government has approved the allocation of milk quota to a small number of new entrants to dairy production. The objective of this study was to describe the characteristics of new entrant dairy farm businesses developing within the Irish dairy industry in terms of geographical distribution, planned production system characteristics and intended operational scale and expected profitability based on an analysis of successful applications and business plans to the Irish New Entrant Dairy Scheme over a 3 year period. A total of 230 applications and business plans of entrants who received up to 200,000 litres of milk quotas through the New Entrant Scheme from 2009-2011, were analysed for the effects of region, age, household income, previous dairy experience, and education on overall business plan expectations. The results show that a youthful, highly educated and highly resourced group of new farmers are using the New Entrant Scheme to enter the Irish dairy industry. Applicant age has a significant impact on available investment equity and expectations, as younger entrants have less owned resources, are increasingly reliant on additional borrowing and have significantly increased expectations for the productive capacity of their potential farm businesses when compared to older entrants. The results provide a further indication that quota abolition is likely to result in an increased regional polarisation of milk production within Ireland with increased intensity of production within traditional milk production areas in the south.

Suggested Citation

  • McDonald, Roberta & Pierce, Karina & Fealy, Reamonn & Horan, Brendan, 2013. "PR - Characteristics, Intentions And Expectations Of New Entrant Dairy Farmers Entering The Irish Dairy Industry Through The New Entrant Scheme," 19th Congress, Warsaw, Poland, 2013 345713, International Farm Management Association.
    • Handle: RePEc:ags:ifma13:345713
    DOI: 10.22004/ag.econ.345713
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/345713/files/13_McDonald_etal_P285-293v5.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.345713?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. William E. Foster & Gordon C. Rausser, 1991. "Farmer Behavior under Risk of Failure," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(2), pages 276-288.
    2. Markus Lips & Peter Rieder, 2005. "Abolition of Raw Milk Quota in the European Union: A CGE Analysis at the Member Country Level," Journal of Agricultural Economics, Wiley Blackwell, vol. 56(1), pages 1-17, March.
    3. Daniel A. Sumner & James D. Leiby, 1987. "An Econometric Analysis of the Effects of Human Capital on Size and Growth among Dairy Farms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(2), pages 465-470.
    4. Lockheed, Marlaine E & Jamison, Dean T & Lau, Lawrence J, 1980. "Farmer Education and Farm Efficiency: A Survey," Economic Development and Cultural Change, University of Chicago Press, vol. 29(1), pages 37-76, October.
    5. Solano, C. & Leon, H. & Perez, E. & Herrero, M., 2003. "The role of personal information sources on the decision-making process of Costa Rican dairy farmers," Agricultural Systems, Elsevier, vol. 76(1), pages 3-18, April.
    6. Gloy, Brent A. & Hyde, Jeffrey & LaDue, Eddy L., 2002. "Dairy Farm Management and Long-Term Farm Financial Performance," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 31(2), pages 1-15, October.
    7. Kumbhakar, Subal C & Ghosh, Soumendra & McGuckin, J Thomas, 1991. "A Generalized Production Frontier Approach for Estimating Determinants of Inefficiency in U.S. Dairy Farms," Journal of Business & Economic Statistics, American Statistical Association, vol. 9(3), pages 279-286, July.
    8. Gloy, Brent A. & Hyde, Jeffrey & LaDue, Eddy L., 2002. "Dairy Farm Management and Long-Term Farm Financial Performance," Agricultural and Resource Economics Review, Cambridge University Press, vol. 31(2), pages 233-247, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. McDonald, Roberta & Karina, Pierce & Reamonn, Fealy & Horan, Brendan, 2013. "Characteristics, intentions and expectations of new entrant dairy farmers entering the Irish dairy industry through the New Entrant Scheme," International Journal of Agricultural Management, Institute of Agricultural Management, vol. 2(4), pages 1-12, July.
    2. Daneluz, Marina & Canever, Mario Duarte & Lima, Helenice González de & Bermudes, Rogerio Folha & Menezes, Gabrielito Rauter, 2022. "Linking entrepreneurial orientation and managerial capacity to performance in dairy farms," Revista de Economia e Sociologia Rural (RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 60(3), January.
    3. Lai, John & Olynk Widmar, Nicole J. & Gunderson, Michael A. & Widmar, David A. & Ortega, David L., 2018. "Prioritization of farm success factors by commercial farm managers," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 21(6), July.
    4. Sporri, Martina & Baráth, Lajos & Bokusheva, Raushan & Ferto, Imre, 2012. "The Impact of Crop Insurance on the Economic Performance of Hungarian Cropping Farms," 123rd Seminar, February 23-24, 2012, Dublin, Ireland 122525, European Association of Agricultural Economists.
    5. Langemeier, Michael & Bradford, Kelly, 2006. "An Examination of the Relationship Between Overall Inefficiency and Farm Characteristics," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2006, pages 1-8.
    6. Dressler, Jonathan B. & Tauer, Loren W., 2011. "Revealing an Equitable Income Allocation among Dairy Farm Partnerships," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 102116, Agricultural and Applied Economics Association.
    7. Ford, Stephen A. & Shonkwiler, John Scott, 1994. "The Effect Of Managerial Ability On Farm Financial Success," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 23(2), pages 1-8, October.
    8. Gyawali, Buddhi R. & Paudel, Krishna P. & Jean, Rosny & Banerjee, Swagata “Ban”, 2023. "Adoption of computer-based technology (CBT) in agriculture in Kentucky, USA: Opportunities and barriers," Technology in Society, Elsevier, vol. 72(C).
    9. Peter Howley & Emma Dillon, 2012. "Factors affecting the level of farm indebtedness: the role of farming attitudes," Working Papers 1201, Rural Economy and Development Programme,Teagasc.
    10. Łukasz Kryszak & Marta Guth & Bazyli Czyżewski, 2021. "Determinants of farm profitability in the EU regions. Does farm size matter?," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 67(3), pages 90-100.
    11. Kuster, Christian & Álvarez, Jorge & Lezcano, Mikaela & Álvarez-Vaz, Ramón Dr., 2022. "Desempeño Económico De Las Empresas Agropecuarias Uruguayas: Estudio Sobre Su Evolución A Través De La Técnica De Clústers Longitudinales A Partir De Datos Contables (Economic Performance Of Uruguayan," OSF Preprints p8zk9, Center for Open Science.
    12. Bigge, Holly M. & Langemeier, Michael R., 2004. "Relative Profitability and Risk of Kansas Farms and S&P 500," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2004, pages 1-7.
    13. Williams, John & McSweeney, Peter & Salmon, Robert, 2014. "Australian Farm Investment: Domestic and Overseas Issues," Papers 234408, University of Melbourne, Melbourne School of Land and Environment.
    14. Gloy, Brent A. & LaDue, Eddy L. & Gunderson, Michael A., 2004. "Credit Risk Migration Experienced By Agricultural Lenders," Working Papers 127147, Cornell University, Department of Applied Economics and Management.
    15. Schorr, A. & Lips, M., 2018. "Influence of milk yield on profitability a quantile regression analysis," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277000, International Association of Agricultural Economists.
    16. Joo, Hyunjeong & Khanal, Aditya R. & Mishra, Ashok K., 2013. "Farmers’ Participation in Agritourism: Does It Affect the Bottom Line?," Agricultural and Resource Economics Review, Cambridge University Press, vol. 42(3), pages 471-490, December.
    17. Adhikari, Arun & Mishra, Ashok K. & Chintawar, Sachin, 2009. "Adoption of Technology and Its Impact on Profitability of Young and Beginning Farmers: A Quantile Regression Approach," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46830, Southern Agricultural Economics Association.
    18. Micheels, Eric T. & Gow, Hamish R., 2011. "Market orientation and firm performance across value disciplines in the Illinois beef sector," International Journal of Agricultural Management, Institute of Agricultural Management, vol. 1(2), pages 1-11.
    19. Leobardo Diosdado & Donald Lacombe & Darren Hudson, 2024. "High Risk, Constrained Return: Impact of Student Loans on Agricultural Real Estate," JRFM, MDPI, vol. 17(5), pages 1-10, April.
    20. Eric T. Micheels & Hamish R. Gow, 2015. "The Effect of Market Orientation on Learning, Innovativeness, and Performance in Primary Agriculture," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 63(2), pages 209-233, June.

    More about this item

    Keywords

    Industrial Organization;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ifma13:345713. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/ifmaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.