Early exit from business, performance and neighbours’ influence: a study of farmers in France

Effects of differing farm policies on farm structure and dynamics

Emmanuel Paroissien, Laure Latruffe and Laurent Piet

European Review of Agricultural Economics, 2021, vol. 48, issue 5, 1132-1161

Abstract: This article investigates the effects of economic performance and neighbours’ characteristics on farmers’ exit behaviour before retirement age. Using a unique set of social security data describing all French farmers under 50 over the years 2004–2017, we explore how these effects depend on farmers’ characteristics and how they stand relative to their neighbours. Our probit estimations reveal that younger farmers and farmers operating smaller farms are more sensitive to their own and neighbours’ performance than other farmers. Allowing for an asymmetric comparison effect between farmers and their neighbours, we uncover a nonlinear influence of own and neighbours’ profit and size.

Keywords: exit; farms; performance; neighbours; heterogeneity (search for similar items in EconPapers)
Date: 2021
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