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The relationship between farm succession and farm assets on Belgian farms

Mieke Calus UGent, Guido Van Huylenbroeck UGent and Dirk Van Lierde (2008) SOCIOLOGIA RURALIS. 48(1). p.38-56
abstract
A major bottleneck in the farm life cycle is intergenerational farm transfer. At the end of the farm life cycle only a limited number of family farms is transferred to the next generation. The average economic farm size increases and this can entail a high financial burden for the successor. This article explores total farm assets as a potential tool to identify farms with a higher probability of transfer. The theory of asset fixity and transaction cost theory are used to explain why higher total farm assets should result in a higher intention to transfer the farm to the next generation, independent of farm type. Empirical results support this theory and show that lower total farm assets often result in farm discontinuation because the total farm value approaches the value of liquidation. Furthermore, our results show that farmers anticipate farm succession possibilities by adapting their farm management. The proposed indicator could therefore be a useful tool for targeting succession or retirement policies.
Please use this url to cite or link to this publication:
author
organization
year
type
journalArticle (original)
publication status
published
subject
keyword
FAMILY FARMS, GROWTH
journal title
SOCIOLOGIA RURALIS
Sociol. Rural.
volume
48
issue
1
pages
38 - 56
Web of Science type
Article
Web of Science id
000253638800003
JCR category
SOCIOLOGY
JCR impact factor
1.41 (2008)
JCR rank
17/99 (2008)
JCR quartile
3 (2008)
ISSN
0038-0199
DOI
10.1111/j.1467-9523.2008.00448.x
language
English
UGent publication?
yes
classification
A1
copyright statement
I have transferred the copyright for this publication to the publisher
id
411804
handle
http://hdl.handle.net/1854/LU-411804
date created
2008-05-21 09:10:00
date last changed
2015-06-17 10:52:04
@article{411804,
  abstract     = {A major bottleneck in the farm life cycle is intergenerational farm transfer. At the end of the farm life cycle only a limited number of family farms is transferred to the next generation. The average economic farm size increases and this can entail a high financial burden for the successor. This article explores total farm assets as a potential tool to identify farms with a higher probability of transfer. The theory of asset fixity and transaction cost theory are used to explain why higher total farm assets should result in a higher intention to transfer the farm to the next generation, independent of farm type. Empirical results support this theory and show that lower total farm assets often result in farm discontinuation because the total farm value approaches the value of liquidation. Furthermore, our results show that farmers anticipate farm succession possibilities by adapting their farm management. The proposed indicator could therefore be a useful tool for targeting succession or retirement policies.},
  author       = {Calus, Mieke and Van Huylenbroeck, Guido and Van Lierde, Dirk},
  issn         = {0038-0199},
  journal      = {SOCIOLOGIA RURALIS},
  keyword      = {FAMILY FARMS,GROWTH},
  language     = {eng},
  number       = {1},
  pages        = {38--56},
  title        = {The relationship between farm succession and farm assets on Belgian farms},
  url          = {http://dx.doi.org/10.1111/j.1467-9523.2008.00448.x},
  volume       = {48},
  year         = {2008},
}

Chicago
Calus, Mieke, Guido Van Huylenbroeck, and Dirk Van Lierde. 2008. “The Relationship Between Farm Succession and Farm Assets on Belgian Farms.” Sociologia Ruralis 48 (1): 38–56.
APA
Calus, M., Van Huylenbroeck, G., & Van Lierde, D. (2008). The relationship between farm succession and farm assets on Belgian farms. SOCIOLOGIA RURALIS, 48(1), 38–56.
Vancouver
1.
Calus M, Van Huylenbroeck G, Van Lierde D. The relationship between farm succession and farm assets on Belgian farms. SOCIOLOGIA RURALIS. 2008;48(1):38–56.
MLA
Calus, Mieke, Guido Van Huylenbroeck, and Dirk Van Lierde. “The Relationship Between Farm Succession and Farm Assets on Belgian Farms.” SOCIOLOGIA RURALIS 48.1 (2008): 38–56. Print.