Economic and environmental determinants of farm succession. The empirical evidence from Wielkopolska region (Poland)

Abstract

The problem of farm succession is one of the most important in Poland's agriculture sector and requires further in-depth research. With the increasing pressure of agriculture on the natural environment, it is particularly important to take this factor into account in the analysis. Therefore, the aim of this paper was to discover the influence of environmental and economic performance on decisions concerning succession in Poland's farms. We used the results of surveys carried out in 78 farms from the Wielkopolska region (Poland). Structural equation modelling (SEM) was then applied for analysis. We showed that the improvement of economic results positively influences the succession processes of farms, which is understandable from the point of view of the interests of potential successors. At the same time, we discovered that the probability of finding a farm's successor is negatively linked with the ‘environmental performance’ variable, which was contrary to our original assumption. We may conclude that farms applying environmental practices should be more interesting and desirable succession object due to the growing interest in ecology among young people, potential successors. It turned out that there is no such regularity in the study group. For that reason, it can be assumed that pro-environmental activities are in a sense a barrier to increasing economic efficiency. This has a negative influence on succession processes, rather than being pro-environmental itself is the cause. Thus, improving economic efficiency should be accompanied by environmental measures, which may require institutional support at the EU and national level for the transfer of farms, consolidation programmes, or even stronger incentives for young farmers. As for the environmental issues, it would be advisable to continue or implement new environmental programmes from the agricultural policy to have a longer action horizon.