Farm performance and investment decisions: evidence from the French (Brittany) dairy sector

Loïc Levi, Laure Latruffe and Aude Ridier

No 285033, Working Papers from Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2)

Abstract: The objective of this paper is to investigate the role of farm performance in farmers’ investment decisions with a theoretical model accounting for adjustment costs and performance. The model is estimated on a balanced sample of specialised dairy farms in Brittany (western France) between 2005 and 2014. Two types of farms are considered: with high and with low capital intensity. The results show that spreading investment over time is, on average, an optimal strategy for maintaining performance in the presence of adjustment costs. In addition, the effect of performance on investment behaviour differs between the two farm types.

Keywords: Agricultural and Food Policy; Farm Management (search for similar items in EconPapers)
Pages: 24
Date: 2019
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Citations: View citations in EconPapers (2)

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https://ageconsearch.umn.edu/record/285033/files/WP19-01.pdf (application/pdf)

Related works:
Working Paper: Farm performance and investment decisions: evidence from the French (Brittany) dairy sector (2019)
Working Paper: Farm performance and investment decisions: evidence from the French (Brittany) dairy sector (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:inrasl:285033

DOI: 10.22004/ag.econ.285033

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