Factors influencing intergenerational succession in family farm businesses in Brazil

Factors influencing intergenerational succession in family farm businesses in Brazil

•Parental encouragement increases the probability of potential successors to remain in the family farm business.•Family farm income & succession planning increase the odds of having a successor.•Farm mechanization level increases the odds of a potential successor wishing to remain. Increasing li...

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Bibliographic Details
Published in:Land use policy Vol. 87; p. 104045
Main Authors: Pessotto, Ana Paula, Costa, Carlos, Schwinghamer, Timothy, Colle, Gabriel, Corte, Vitor Francisco Dalla
Format: Journal Article
Language:English
Published: Kidlington Elsevier Ltd 01-09-2019
Elsevier Science Ltd
Subjects:
Bayesian analysis
Business
Companies
Families & family life
Family farm
Family farms
Generalized linear model
Intergenerational transfer
Land use
Life expectancy
Life span
Rural areas
Succession
Succession planning
Brazil
Succession
Generalized linear model
Family farm
Intergenerational transfer
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Summary:•Parental encouragement increases the probability of potential successors to remain in the family farm business.•Family farm income & succession planning increase the odds of having a successor.•Farm mechanization level increases the odds of a potential successor wishing to remain. Increasing life expectancy and family farm business succession are affecting rural societies and economies in Brazil. There were hypothesized to be a large number of factors influencing family farm business succession, and the hypothesized factors were quantified based on survey results from 213 owners and 176 potential successors of family farm businesses in Rio Grande do Sul State (Brazil). The concept of successor identification was indicated by Bernoulli/binary responses to whether or not potential successors wished to remain of the family farm and whether or not the successor was identified was indicated by responses on a five-point Likert scale. The data was modeled using proportional odds logistic regression and generalized linear modeling and results from non-Bayesian and semi-Bayesian methods were compared. Encouraging the potential successor to stay and taking active steps to pass on the farm were positively associated with successor identification. The potential successors were discouraged to succeed their parents in the family farm business by preferences for urban conveniences over rural challenges and these preferences were associated with a lack of succession planning.
ISSN:0264-8377
1873-5754
DOI:10.1016/j.landusepol.2019.104045