From a Lifecycle Model with endogenous (entrepreneurial) resources, we defined optimal debt, and the consequences of credit constraints on the heterogeneity of farmer's households. Taking into account age effects in borrowing behaviour of farmers, we estimated borrowing equations by age brackets. Using switching regression procedures, we found two different borrowing equations, corresponding to constrained and optimal debt. We estimated a frequency of constrained debt at two third in the three first age brackets. This high frequency of debt constrained farms highlight the important role of farm financing policy on the wealth position of farmers households.
