SUCCESSION IN FAMILY FARM BUSINESS: EMPIRICAL EVIDENCE FROM THE U.S. FARM SECTOR

Survival of many family farms is dependent on successful intergenerational transfer. Given the importance of succession in the farm sector, the purpose of this paper is to examine factors that are likely to influence succession decisions on U.S. farms. The paper uses 2001 ARMS data and a multinomial Logit (MNL) regression to estimate family succession, non-family succession, and farm exit decisions of farm households in the U.S. Model choice and specification issues are discussed. Results indicate that operatorÂ’'s education, household wealth, growth in farm size, and farm debt are important factors that determine succession decisions. Additionally, farm specialization is taken into consideration when farm operators make their succession plans.


Subject(s):
Issue Date:
2004
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/20114
Total Pages:
29
Series Statement:
Selected Paper




 Record created 2017-04-01, last modified 2017-08-24

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