Who exits from a reforming sector? The case of dairy farmers in Israel

Ayal Kimhi and Ortal Siminovich

No 290058, Discussion Papers from Hebrew University of Jerusalem, Department of Agricultural Economics and Management

Abstract: We analyze the responses of dairy farmers in Israel to an institutional reform that allowed, for the first time, for buying and selling of production quotas, and provided financial incentives for such quota trading. Larger producers were less likely to sell quota and exit but also less likely to expand, indicating that the incentives were most effective for smaller farms who had to choose between exit and expansion. The existence of a successor reduced the exit probability, while farmers working off the farm were more likely to expand by buying additional quota.

Keywords: Agricultural and Food Policy; Livestock Production/Industries (search for similar items in EconPapers)
Pages: 19
Date: 2018
New Economics Papers: this item is included in nep-agr and nep-ara
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Persistent link: https://EconPapers.repec.org/RePEc:ags:huaedp:290058

DOI: 10.22004/ag.econ.290058

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