Factors affecting exit intentions in Norwegian sheep farms

Abstract

Western livestock sectors have shifted towards fewer, larger farms, causing concerns about the appearance of the countryside, ecosystem services, and rural depopulation. This study empirically estimates factors likely to affect exit intentions in sheep farms. Data were collected from specialised sheep farms included in the Norwegian Farm Business Survey. Of the 59 responses, 44 operators believed the farm would be producing sheep in 10 years. A logistic regression model was used to determine the most decisive variables associated with an exit intention, where the interdependence of factors affecting profitability and, subsequently, exit intention were taken into account. This study found that farmers reporting the most positive views of the local farming community were less likely to plan an exit. Exit intentions were not significantly influenced by farming goals, location, off-farm income, or profitability. The primacy of non-economic, community-based factors as an engine to sustain farms, suggests that more attention need to be paid to social processes and relations in local communities. Farmer groups and policy-makers should consider how to encourage supportive local communities when designing policies to retain sheep farms.