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The relationship between farm succession and farm assets on Belgian farms

(2008) SOCIOLOGIA RURALIS. 48(1). p.38-56
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Organization
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.
Keywords
FAMILY FARMS, GROWTH

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Citation

Please use this url to cite or link to this publication:

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.
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.
Chicago author-date
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.
Chicago author-date (all authors)
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.
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.
IEEE
[1]
M. Calus, G. Van Huylenbroeck, and D. Van Lierde, “The relationship between farm succession and farm assets on Belgian farms,” SOCIOLOGIA RURALIS, vol. 48, no. 1, pp. 38–56, 2008.
@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},
  keywords     = {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},
}

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