What determines the exit from agriculture Evidence from rural households in Poland
Michał Dudek, Agnieszka Wrzochalska
Abstract: European agriculture undergoes the structural changes. A significant decline in the number of farms is one of the most visible signs of this process. The presented paper aims at defining the latest level, patterns and determinants
of farm exits in Polish agriculture. In particular, the impact of socio-economic factors on this process is analysed along with changes in a broader institutional context. The study shows that socio-demographic factors associated primarily with both the characteristics of families and farm managers had a significant influence on the leaving from farming in Poland. The impact of micro-economic and spatial factors on farming discontinuation was observed as well. Particularly, the probability of farm exits was relatively lower for agricultural holdings located in the regions with small, semi-subsistence agriculture and at the same time for larger farms with a credit aimed at production development. It was found that the farm exits decisions were also significantly determined by an early retirement programme as well as agricultural land rental. However, the research results indicated different rates of farm exits during the time span investigated. The data on farm exits used in this paper were taken from the comprehensive, longitudinal surveys carried out by the IAFE-NRI in the same 76 villages located across Poland. Unlike the majority of research, this paper is based on information concerning various characteristics of the family farms, which subsequently contributed to farm exits. In order to identify and measure the relevant farm exits’ determinants the binary dependent variable logit models were used.
of farm exits in Polish agriculture. In particular, the impact of socio-economic factors on this process is analysed along with changes in a broader institutional context. The study shows that socio-demographic factors associated primarily with both the characteristics of families and farm managers had a significant influence on the leaving from farming in Poland. The impact of micro-economic and spatial factors on farming discontinuation was observed as well. Particularly, the probability of farm exits was relatively lower for agricultural holdings located in the regions with small, semi-subsistence agriculture and at the same time for larger farms with a credit aimed at production development. It was found that the farm exits decisions were also significantly determined by an early retirement programme as well as agricultural land rental. However, the research results indicated different rates of farm exits during the time span investigated. The data on farm exits used in this paper were taken from the comprehensive, longitudinal surveys carried out by the IAFE-NRI in the same 76 villages located across Poland. Unlike the majority of research, this paper is based on information concerning various characteristics of the family farms, which subsequently contributed to farm exits. In order to identify and measure the relevant farm exits’ determinants the binary dependent variable logit models were used.
Keywords: CAP; farm exit; farming family; socio-demographic and economic determinants
Date published: 2018-01-31
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