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Abstract

This paper analyses factors influencing Scottish dairy farmers’ intentions to change size of business in response to milk quota abolition. The analysis uses structural equation modelling and is based on survey data collected in 2009 through telephone interviews with 533 farmers. Results suggest that farmers who (1) intend to leave their farm to children; (2) have not inherited their farm from previous generation; (3) perceive a lower impact of milk quota abolition on business; (4) have less negative attitudes towards policies/regulations; and (5) perceived a lower influence of policies/markets on business during the past decade are most likely to increase farm size.

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