Workshops

Abstract

An ageing farm population and increasing concerns around food production have led to increasing concern in the area of farm succession and inheritance. The creation of robust policy to allow younger farmers enter the sector and accommodate outgoing farmers is challenging. This session will discuss these issues and aims to provide suggestions as to how this can be achieved.

Description

The process of farm succession and inheritance is highly complex and involves a variety of actors, ranging from family members to professionals providing advice on legal and financial matters (Williams, 2006). In most European countries the family farm model is the predominant form of ownership, meaning that farm transfer commonly takes place generationally, with much of the literature highlighting that inheritance is the dominant means of entering farming (Hennessy and Rehman, 2007; Taylor et al., 1998; Kelly, 1982). Factors affecting the decision to transfer a family farm are highly complex, ranging across social, cultural and economic concerns. Some farmers aim to ensure all family members are catered for when the farm is transferred, signifying the power of emotional and symbolic factors in this decision-making process. Policy effects and economic concerns of capital taxes and future income can also have a very strong influence on farmer choices. Advisory services face particularly serious challenges as the farming community continues to rely heavily on their direction and guidance about succession and inheritance decisions; however, the relatively limited research on this issue means that advisors often feel ill-equipped to deal with the issue.

In many developed countries there is concern over an ageing farming population. Almost one third of farm holders in Europe are over the age of 65 (Zagata and Sutherland, 2015). This is a source of major concern for the agricultural industry, as research has found a positive correlation between young farmers and farm efficiency/innovation (Potter and Lobley, 1992; Howley et al., 2012). A stifled land market in some countries has resulted in very low land mobility and capital accumulation amongst older farmers unwilling to transfer their farm assets, while state assistance in agriculture provides direct payments to farmers making it financially beneficial to retain agricultural land. The agglomeration of these issues has created a sector dominated by older farmers, where young farmer entry is rendered problematic. The future of agriculture and those who wish to enter the sector are jeopardised by these challenges.

Certain commentators have pointed to young trained farmers as having a positive impact on farms in terms of issues like technical efficiency, increasing output, decreasing environmental impact and being more aware of market requirements (Lobley, 2010; Howley et al., 2012). Based on the current literature, in a market that requires production in an efficient manner, the suggestion is that the most productive and efficient farmers, i.e. young farmers, should be working in the sector (Williams, 2006; Zagata and Sutherland, 2015).

The process of agricultural policy-making has been widely criticised by academics, particularly in relation to the Common Agricultural Policy (CAP). If policies are not reflective of the issues at ground level then they will not be successful (Pieckzka and Escobar, 2012). Brouwer (2004) further suggests that a requirement of effective policy is an appropriate incentive for the party affected by the policy. Vanclay (2004) also points to the heterogeneous nature of the farming community as a considerable challenge for policy-making. Extending these ideas to the area of farm succession and inheritance, and based on the limited success of previous policies and schemes targeting successors and retiring farmers, questions about the policy process can be raised in terms of the degree to which the complexity of succession/inheritance has been understood and taken into account (Hennessy, 2014).

Papers are invited that address any of the above themes and issues.

Workshop Processes

Papers for this workshop will be presented orally (12 minutes per paper). The chair will first introduce the session. The number of papers per slot will ideally be limited to a maximum of 4 per 90 minutes, with the aim of having at least 5 minutes of discussion with the audience after each one, with the discussion being generated by the chair if this is required. At the final time slot, 20 minutes will be reserved for a moderated discussion by the Chair, with further questions invited from the audience at that time.

Papers

5.2 The Potential of Farm Partnerships to Facilitate Farm Succession and Inheritance

5.2 WIillingness of youth to practise Agriculture: Implications for farm sucession and sustainable farming systems in Nigeria

5.2 Starting a process: Practice and policy lessons from a farm succession planning intervention in the Australian dairy industry

5.2 Intergenerational Family Farm Transfer: An Insight into the Human Side