Abstract
In this paper, we extend the analysis of farm structural change with respect to farm specialisation, size and exit in Norway by, first, explicitly incorporating the location information of farms generating a number of neighbouring farms within a certain range and, second, by predicting farm numbers in addition to farm group shares, which allows for consideration of the exit farm group. We use Norwegian single-farm full census data for the period 1996–2015. Four production specialisations and seven size classes represent farm groups, as well as a residual and an exit farm group at the regional level. The estimates indicate the explanatory power and importance of aggregated farm location information in the model. Simulation analysis showed that the farm groups develop differently, given a change in the number of neighbouring farms with respect to the farm numbers and farm group shares.
Highlights
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In this paper, we extend the analysis of farm structural change with respect to farm specialisation, size and exit in Norway by, first, explicitly incorporating the location information of farms generating a number of neighbouring farms within a certain range and, second, by predicting farm numbers in addition to farm group shares, which allows for consideration of the exit farm group
We analyse the drivers of farm structural change in Norwegian agriculture with farm census data
Summary
Publisher’s Note: MDPI stays neutral with regard to jurisdictional claims in published maps and institutional affiliations. Dominated by very small farms, compared to the rest of Europe where farming has been rationalised into much larger units, thereby, improving the structural efficiency of agriculture. This structural development partly results from one of the most strongly state regulated agricultural sectors in Europe [3]. The literature offers a multitude of additional determinants to explain structural changes in Norway, which are in line with findings in other countries, including technology (economies of scale, productivity growth, farm household and path dependency), input and output prices and macroeconomic conditions (e.g., the unemployment rate), regional characteristics, agricultural policies and competitive pressures from non-agricultural sectors for resources (e.g., [5–11])
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