Succession decisions in family farms and public policies in developed countries

Abstract

This chapter presents a review of the relevant literature with reference to developed countries, starting with the theoretical models, and then examines the empirical analyses of the determinants of family farm succession and its effect on farm behavior. It discusses the policies that are relevant for farm succession. Only one paper includes among the determinants a variable that could potentially be extremely important, that is, public policies. Mishra et al. have shown that the intensity of government payments decreases the intention of exiting farming, hence implying more likelihood of an intrafamily succession. A strictly related issue is whether farm succession has a positive impact on farm economic performances. Looking at policies influencing farm succession, the questions are the rationale behind the relevant policies, and their effect. It is useful to divide the policies between inheritance laws and regulations, general agricultural policies, fiscal and retirement policies and policies directly concerning farm transfers.