PR - FARM VALUE EVALUATION: METHODS AND CHALLENGES

P Jeanneaux, Y. Desjeux, Geoffroy Enjolras and Laure Latruffe

No 345774, 21st Congress, Edinburgh, Scotland, July 2-7, 2017 from International Farm Management Association

Abstract: Statistics clearly show a continuous decline in the number of farms in Europe. One fourth of farms disappeared in Metropolitan France between 2000 and 2010. With 13,200 entering farmers in 2013, compared to 17,200 exiting farmers, the renewal rate was 77%. In this context, some concerns have been expressed regarding a lack of generational renewal in agriculture despite existing policies targeting this issue. This communication based on a literature review contributes to scientific knowledge and provides new perspectives to farm stakeholders and policy-makers on farm transfers, focusing specifically on the role of the value of the farm in this process. Agricultural sector is particularly affected by succession problems: high farm value due to animals as well as land, buildings and machinery; hence, high transfer cost; low attractiveness due to hard working conditions; and by contrast low profitability. Farm transfer depends on the value of the farm. There are numerous methods to assess the value but they are less used. The ‘patrimonial’ method based on the accounting/market value of the different assets the farm comprises is rather used. Therefore, the farm value depends also on sociological points of view, needs to take into account intangible assets and not only financial considerations.

Keywords: Farm; Management (search for similar items in EconPapers)
Pages: 13
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/345774/files/17_PR_Jeanneaux_etal_m2_p7.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:ifma17:345774

DOI: 10.22004/ag.econ.345774

Access Statistics for this paper

More papers in 21st Congress, Edinburgh, Scotland, July 2-7, 2017 from International Farm Management Association Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().