IDEAS home Printed from https://ideas.repec.org/p/ags/ifma17/345774.html
   My bibliography  Save this paper

Pr - Farm Value Evaluation: Methods And Challenges

Author

Listed:
  • Jeanneaux, P
  • Desjeux, Y.
  • Enjolras, G.
  • Latruffe, L.

Abstract

Statistics clearly show a continuous decline in the number of farms in Europe. One fourth of farms disappeared in Metropolitan France between 2000 and 2010. With 13,200 entering farmers in 2013, compared to 17,200 exiting farmers, the renewal rate was 77%. In this context, some concerns have been expressed regarding a lack of generational renewal in agriculture despite existing policies targeting this issue. This communication based on a literature review contributes to scientific knowledge and provides new perspectives to farm stakeholders and policy-makers on farm transfers, focusing specifically on the role of the value of the farm in this process. Agricultural sector is particularly affected by succession problems: high farm value due to animals as well as land, buildings and machinery; hence, high transfer cost; low attractiveness due to hard working conditions; and by contrast low profitability. Farm transfer depends on the value of the farm. There are numerous methods to assess the value but they are less used. The ‘patrimonial’ method based on the accounting/market value of the different assets the farm comprises is rather used. Therefore, the farm value depends also on sociological points of view, needs to take into account intangible assets and not only financial considerations.

Suggested Citation

  • Jeanneaux, P & Desjeux, Y. & Enjolras, G. & Latruffe, L., 2017. "Pr - Farm Value Evaluation: Methods And Challenges," 21st Congress, Edinburgh, Scotland, July 2-7, 2017 345774, International Farm Management Association.
    • Handle: RePEc:ags:ifma17:345774
    DOI: 10.22004/ag.econ.345774
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/345774/files/17_PR_Jeanneaux_etal_m2_p7.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.345774?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. Gaté, Romain & Latruffe, Laure, 2015. "Problems encountered with farm transfers: the case of Brittany," Working Papers 206047, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).
    2. Alfred M. Stiglbauer & Christoph R. Weiss, 2000. "Family and Non-Family Succession in the Upper-Austrian Farm Sector," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, vol. 54, pages 5-26.
    3. 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.
    4. Shan Ma & Scott M. Swinton, 2012. "Hedonic Valuation of Farmland Using Sale Prices versus Appraised Values," Land Economics, University of Wisconsin Press, vol. 88(1), pages 1-15.
    5. Ayal Kimhi & Noga Nachlieli, 2001. "Intergenerational Succession on Israeli Family Farms," Journal of Agricultural Economics, Wiley Blackwell, vol. 52(2), pages 42-58, May.
    6. Mikaël Akimowicz & Marie-Benoît Magrini & Aude Ridier & Jacques-Eric Bergez & Denis Requier-Desjardins, 2013. "What Influences Farm Size Growth? An Illustration in Southwestern France," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 35(2), pages 242-269.
    7. Oscar R. Burt, 1986. "Econometric Modeling of the Capitalization Formula for Farmland Prices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(1), pages 10-26.
    8. Peter Howley, 2015. "The Happy Farmer: The Effect of Nonpecuniary Benefits on Behavior," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(4), pages 1072-1086.
    9. Madior Fall & Thierry Magnac, 2004. "How Valuable Is On-Farm Work to Farmers?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(1), pages 267-281.
    10. Peter J. Barry, 1980. "Capital Asset Pricing and Farm Real Estate," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(3), pages 549-553.
    11. Nigel Key & Michael J. Roberts, 2009. "Nonpecuniary Benefits to Farming: Implications for Supply Response to Decoupled Payments," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(1), pages 1-18.
    12. Timothy G. Baker & Michael D. Boehlje & Michael R. Langemeier, 2014. "Farmland: Is It Currently Priced as an Attractive Investment?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(5), pages 1321-1333.
    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. Philippe Jeanneaux & Yann Desjeux & Geoffroy Enjolras & Laure Latruffe, 2022. "Farm valuation: A comparison of methods for French farms," Agribusiness, John Wiley & Sons, Ltd., vol. 38(4), pages 786-809, October.
    2. B. James Deaton & Chad Lawley, 2022. "A survey of literature examining farmland prices: A Canadian focus," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 70(2), pages 95-121, June.
    3. Muhammad Abid Shahzad & Syed Abubakr & Christian Fischer, 2021. "Factors Affecting Farm Succession and Occupational Choices of Nominated Farm Successors in Gilgit-Baltistan, Pakistan," Agriculture, MDPI, vol. 11(12), pages 1-17, November.
    4. Bertoni, Danilo & Cavicchioli, Daniele & Latruffe, Laure, 2016. "Impact of succession on performance: The case of the Italian family farms," 149th Seminar, October 27-28, 2016, Rennes, France 245166, European Association of Agricultural Economists.
    5. Danilo Bertoni & Daniele Cavicchioli & Laure Latruffe, 2023. "Impact of business transfer on economic performance: the case of Italian family farms," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 48(2), pages 186-213.
    6. Bertoni, Danilo & Cavicchioli, Daniele & Latruffe, Laure, 2017. "Performance post succession on Italian family farms," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261435, European Association of Agricultural Economists.
    7. 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).
    8. Chi Su & Richard A. Schoney & James F. Nolan, 2023. "Buy, sell or rent the farm: succession planning and the future of farming on the Great Plains," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 18(3), pages 627-669, July.
    9. Chacattrai Rayasawath, 2018. "Factors Affecting the Household Succession in Agricultural Occupation in Nakhon Ratchasima Province, Thailand," Agriculture, MDPI, vol. 8(7), pages 1-14, July.
    10. Morais, Manoela & Borges, João Augusto Rossi & Binotto, Erlaine, 2018. "Using the reasoned action approach to understand Brazilian successors’ intention to take over the farm," Land Use Policy, Elsevier, vol. 71(C), pages 445-452.
    11. Li, Xin, 2016. "The Farmland Valuation Revisited," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 4(2), pages 1-14, April.
    12. Peter Howley & Emma Dillon & Thia Hennessy, 2014. "It’s not all about the money: understanding farmers’ labor allocation choices," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 31(2), pages 261-271, June.
    13. Shaik, Saleem & Atwood, Joseph A. & Helmers, Glenn A., 2012. "Did 1933 new deal legislation contribute to farm real estate values: A regional analysis," Journal of Policy Modeling, Elsevier, vol. 34(6), pages 801-816.
    14. Allan, Corey & Kerr, Suzi & Owen, Sally, 2020. "Over-valued or over-looked? A theoretical and empirical investigation of agricultural land values against profitability in Aotearoa New Zealand," Working Paper Series 9129, Victoria University of Wellington, School of Economics and Finance.
    15. Newell, Richard G. & Papps, Kerry L. & Sanchirico, James N., 2005. "Asset Pricing in Created Markets for Fishing Quotas," Discussion Papers 10639, Resources for the Future.
    16. Alessandro Corsi & Vito Frontuto & Silvia Novelli, 2021. "What Drives Farm Structural Change? An Analysis of Economic, Demographic and Succession Factors," Agriculture, MDPI, vol. 11(5), pages 1-24, May.
    17. Dudek, Michał, 2016. "A matter of family? An analysis of determinants of farm succession in Polish agriculture," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 118(2), pages 1-7, August.
    18. Choumert, Johanna & Phélinas, Pascale, 2015. "Determinants of agricultural land values in Argentina," Ecological Economics, Elsevier, vol. 110(C), pages 134-140.
    19. Vare, Minna & Weiss, Christoph R. & Pietola, Kyosti, 2005. "Should One Trust a Farmer's Succession Plan? Empirical Evidence on the Intention-Behaviour Discrepancy from Finland," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24622, European Association of Agricultural Economists.
    20. Boštjan KERBLER, 2012. "Factors affecting farm succession: the case of Slovenia," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 58(6), pages 285-298.

    More about this item

    Keywords

    Farm Management;

    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:ifma17:345774. 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.