Fixed Factors, Family Farm Income and the Continuity of Dutch Dairy Farms

J Luijt and J H A Hillebrand

European Review of Agricultural Economics, 1992, vol. 19, issue 3, 265-82

Abstract: The authors hypothesize that there is a strong relation between the availability of fixed inputs and the continuity of farms, and verify this hypothesis in three steps. To find the relation between the employment of fixed inputs and gross profit, they specify and estimate a restricted profit function. Bearing in mind that most of the fixed inputs do not have a single market price, they deduce family farm income from gross profit. Finally, they investigate the relation between calculated family farm income and continuity. The outcome clarifies how the employment or availability of fixed inputs on the farm level influences the probability of farm continuation. Copyright 1992 by Oxford University Press.

Date: 1992
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