scholarly journals The Survival of Family Farms: Socioemotional Wealth (SEW) and Factors Affecting Intention to Continue the Business

Agriculture ◽  
2021 ◽  
Vol 11 (6) ◽  
pp. 520
Author(s):  
Manel Plana-Farran ◽  
José Luis Gallizo
Keyword(s):  
Short Fiber ◽  
Sustainable Land Use ◽  
Family Farm ◽  
Family Farms ◽  
Socioemotional Wealth ◽  
Factors Affecting ◽  
The Family ◽  
Agricultural Schools ◽  
Environmental Goals ◽  
Intention To Continue

This article addresses the problem of succession in family farms in a context of generational change. Family businesses are characterized by their long-term orientation and by having a positive effect through environmental goals that remain in place generation after generation. The general increase in average age among farmers is seen as a barrier to more sustainable land use, and the survival of family farming therefore depends on the availability of a successor in the family. Socioemotional wealth (hereafter, SEW) is understood as the affective endowment of family members. This study adopts the SEW dimensions conceptually validated to analyse the effects of psychological and socioeconomic factors on potential successors’ intentions. The results of a survey administered to students attending agricultural schools in Catalonia show that intentions to assume the management and ownership of the family farm increase in line with individuals’ interest in creating their own business, their ability to take over the farm, and their emotional inclination to continue the family legacy. In addition, SEW was measured in relation to the potential successor and not the incumbent, as has typically been the case in previous work, bringing this important research subject as a principal actor. Finally, an empirical validation of a short FIBER scale, i.e., REI scale, was obtained that relates individuals’ intentions to succeed the family farm to the socioemotional wealth of business families, testing suitability of the REI scale as a measure of intention to succeed.

Socioemotional wealth in the family farm

2015 ◽  
Vol 75 (3) ◽  
pp. 403-415 ◽  
Author(s):  
Jonathan B Dressler ◽  
Loren Tauer
Keyword(s):  
Family Member ◽  
Family Business ◽  
Research Literature ◽  
Lower Amount ◽  
Farm Income ◽  
Family Farm ◽  
Family Farms ◽  
Socioemotional Wealth ◽  
Content Type ◽  
The Family

Purpose – A family member may work for the family business even though the direct financial benefits he or she may receive in the form of a salary may be lower than what could be earned working for a non-family business. The lower amount may be accepted because of benefits of association with the family business. This psychic non-pecuniary return has been called socioemotional wealth in the family business research literature. The purpose of this paper is to propose a method to estimate socioemotional wealth and apply that technique to a group of family dairy farms to estimate socioemotional wealth for those family farms. Design/methodology/approach – A panel regression method was used to empirically allocate net farm income to the unpaid factors of equity, labor, and management provided by a family member in a family farm partnership. The estimated returns of labor plus management are compared to the market salary earned by farm managers who manage farms. The difference between the higher hired farm manager salary and what the family manager earns in the family farm from labor and management is an estimate of the non-pecuniary return the family member receives from managing the family farm as compared to managing the non-family farm. Findings – Differences in managers’ salary working for the non-family farm and the implied family manager financial compensation estimates indicate that family business managers’ non-pecuniary return from managing the family farm had an implied economic value averaging $22,026 per year over 1999-2008. Assuming that the manager would be indifferent between working for the family farm or the non-family farm if the sum of pecuniary and non-pecuniary returns were the same, the non-pecuniary annual benefits of $22,026 accrues in the form of socioemotional wealth associated as a member in the family business. Originality/value – Although the literature discusses how family members may accept a lower salary working for the family business than they could earn doing comparable work in a non-family business because of non-financial rewards they experience working for the family business, there have been no estimates of the value of this pecuniary benefit. The authors arrive at an estimate using a group of family dairy farm businesses that have multiple family managers.

scholarly journals Kierunki racjonalizacji struktury rolnictwa polskiego w świetle rozwiązań stosowanych w Europie Zachodniej

2018 ◽  
pp. 89-104
Author(s):  
Jerzy BABIAK
Keyword(s):  
Structural Transformation ◽  
Agricultural Land ◽  
Agricultural System ◽  
Family Farm ◽  
Family Farms ◽  
Spontaneous Transformation ◽  
Community Law ◽  
The Family ◽  
Principal Task ◽  
Agrarian Structure

Agriculture is a peculiar sector of the economy that requires support from the state. Its spontaneous transformation is not effective enough, therefore a number of mechanisms are applied to stimulate advantageous structural transformation both at EU and national levels. The agricultural system of West European states is based on the family farm. Although Community law does not define a family farm, different systems provide various measures applied in order to protect family farms, e.g. by means of controlling agricultural land trade. The paper presents the legal and institutional solutions applied in this respect in France, Germany and Denmark. These states have not been randomly selected, as they are the main competitors for Polish agriculture in the Community market, and they have succeeded in establishing an agrarian structure. Against the background of their experience, Polish legal solutions are presented and assessed. The responsibilities of the Agricultural Property Agency are presented in detail; its principal task apart from the management of State Treasury property is to shape agrarian structure.

scholarly journals New rural economy: Challenges and diversity in Eastern Croatia

2009 ◽  
Vol 3 (5-6) ◽  
pp. 51-54
Author(s):  
Tihana Sudarić ◽  
Krunoslav Zmaić ◽  
Ružica Lončarić
Keyword(s):  
Urban Areas ◽  
Rural Economy ◽  
Renewable Energy Sources ◽  
Added Value ◽  
Human Potential ◽  
Family Farm ◽  
Family Farms ◽  
Economic Activities ◽  
The Family ◽  
Traditional Activity

Eastern part of Croatia is agricultural region according to natural resource (fertile soil, first of all), as well as human potential (long experience in traditional agriculture). Besides agriculture as traditional activity, a characteristic of rurality is also added to this region. Rural area is dominant in Eastern Croatia and it effects on relatively small urban areas. This paper represents new possibilities of rural economic activities on family farms in Eastern Croatia. Role and significant of rural economic activities is analyzed through indicators overview (land structure, GDP, population, population density, TEA index, unemployment ect.). Challenges through diversification of rural economic activities in this paper includes added economic activities realized on family farms through tourism, crafts, handy work, processing, renewable energyetc. Added economic activities on family farms in Eastern Croatia participate with only 3.9%. Suggestions and possibilities measures of rural economic activities diversification are reflected through two main streams. First stream is diversification of activities through added value of agricultural products as vertical connection (organic food, autochthony products, functional food, renewable energy sources etc.). Other one economic activity diversification indicates distribution function of final products through different services on the family farm (direct sale, specialized shops, rural tourism and many other services).

The land is what matters: factors driving family farms to organic production in Poland

2019 ◽  
Vol 121 (6) ◽  
pp. 1354-1367
Author(s):  
Pawel Chmielinski ◽  
Aleksandra Pawlowska ◽  
Monika Bocian ◽  
Dariusz Osuch
Keyword(s):  
Organic Farming ◽  
Negative Impact ◽  
Positive Impact ◽  
Organic Production ◽  
Family Farm ◽  
Family Farms ◽  
Content Type ◽  
The Family ◽  
Significant Negative Impact ◽  
Direct Payments

PurposeThe purpose of this paper is to analyse tendency of farms to switch from conventional to organic production.Design/methodology/approachThe study used data on 6,229 individual farms, which in 2009–2016 continued to participate in the Polish FADN. Estimation of logit models allowed the authors to indicate, separately for each period in the years between 2009 and 2015, a set of characteristics influencing the decision of farms on the use of organic production.FindingsThe authors demonstrate that, first of all, land factors were of major importance when deciding on conversion to organic farming, with only the own land inputs (owned by the farm) having a positive impact on the transition of farms to organic production. But then the resource of the capital factor, identified with the assets owned by the farm, exercised a significant negative impact. Income derived from the family farm, although had a positive impact, did not significantly determine the farm’s decision on conversion to organic production. While support for agri-environmental purposes had a positive impact on the decision of farm to convert, the payments received under the direct payments affected this decision negatively. The tendency to start organic production is also conditioned regionally.Research limitations/implicationsThe data of this study are limited in size, and limited to the Polish context.Originality/valueThe research setting for this paper is original; the study takes part in the discussion about factors of conversion to organic farming, on example of Poland and is a voice in the discussion on effective support for the development of organic farming in the context of sustainable development.

scholarly journals No hard feelings? Non-succeeding siblings and their perceptions of justice in family firms

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ilse Matser ◽  
Jelle Bouma ◽  
Erik Veldhuizen
Keyword(s):  
Procedural Justice ◽  
Sibling Relationships ◽  
Family Farm ◽  
Central Research ◽  
Family Farms ◽  
Content Type ◽  
Business System ◽  
The Family ◽  
Succession Process ◽  
The Impact

PurposeFamily farms, in which business and family life are intricately interwoven, offer an interesting context for better understanding the interdependence between the family and business system. Many family farms struggle to survive, and the succession process is a key period in which the low returns on investment become evident but also the emotional attachment of the family to the farm and the willingness to transfer the business to the next generation. We take the perspective of non-succeeding siblings since they are crucial for a successful succession but their role and position in this process is far from clear. This study will help to increase our knowledge of how fairness is perceived by non-successors and of the impact of perceived (in)justice on the family business system.Design/methodology/approachTo analyze the effect on sibling relationships of an unequal outcome of the succession process, we choose the family farm context. We used interview data from multiple family members from several family farms in the Netherlands in different stages of succession. We utilized a framework based on justice theory to analyze perceptions of fairness among non-succeeding siblings. The central research question for this study is as follows: How do non-succeeding siblings perceive justice with regard to family firm succession?FindingsThe acceptance of the outcomes of the succession process by non-succeeding siblings is influenced by their perception of the fairness of the process itself and decisions made by the incumbent and successor with regard to these outcomes. It seems that stakeholders who occupy multiple roles with conflicting justice perspectives handle these contradictions with the help of an overarching goal—in this study, preserving the continuity of the family farm—and by prioritizing and adjusting the justice perspectives accordingly. The findings further show that both distributive justice and procedural justice are important and interact with each other.Originality/valueOur study contributes to the literature by applying the theoretical framework of distributive and procedural justice to the context of family farm succession. This helps us to understand the position of non-succeeding siblings and their role and position in the succession process, which is important because sibling relationships have a significant impact on family harmony, with potential consequences for the business as well.

scholarly journals Sustainable economic development assessment model for family farms

2018 ◽  
Vol 64 (No. 12) ◽  
pp. 527-535 ◽  
Author(s):  
Jūratė SAVICKIENĖ ◽  
Astrida MICEIKIENĖ
Keyword(s):  
Economic Development ◽  
Hierarchical Cluster ◽  
Assessment Model ◽  
Family Farm ◽  
Family Farms ◽  
Practical Applications ◽  
Sustainable Economic Development ◽  
The Family ◽  
Index Value ◽  
Development Assessment

This article is aimed to address the issue of sustainable economic development assessment in family farms. A complex methodology of family farm sustainable economic development assessment based on the family farm sustainable economic development index has been created following analysis of family farm sustainable economic development assessment methodologies, which are proposed by scientists and used in practice. The Kruskal-Wallis test and hierarchical cluster analysis were used to check the relevance of the index in family farm sustainable economic development assessment. The index value range was calculated using descriptive statistics. The characteristics of the index allow creating models for family farm sustainable economic development classification types based on k-means clustering. The family farms were classified into nine types. Examples of Lithuanian family farms were provided to demonstrate practical applications of the index. Furthermore, analysis of Lithuanian family farm sustainable economic development types by specialisation enabled to identify the main reasons for the existing situation in the farms.

Factors That Influence the Next Generation's Decision to Take Over the Family Farm

1995 ◽  
Vol 8 (2) ◽  
pp. 99-120 ◽  
Author(s):  
Colette Dumas ◽  
Jean Pierre Dupuis ◽  
Francine Richer ◽  
Louise St.-Cyr
Keyword(s):  
Rapid Change ◽  
Future Research ◽  
Family Farm ◽  
Next Generation ◽  
Family Farms ◽  
Family Farming ◽  
The Family ◽  
Generation Family ◽  
Specific Factors ◽  
Factors Of Influence

The survival of family farms is threatened by rapid change, intense international competition, and a resulting reduction of interest in perpetuating the family farm. What influences the next generation to pursue family farming, in spite of the difficulties? Do these factors differ between men and women? An in-depth, descriptive, and exploratory study of thirty next generation family farm members indicates specific factors critical to their decision to pursue the family farm succession. The findings are depicted in a framework that portrays these factors of influence and the effect they have on the succession decision of the next generation. Implications for practice and future research are also presented.

Capitalization without Labor-Hiring: The Family Farm as a New Type of Agricultural Management in Pingzhen of Southern Anhui (无雇佣化的资本化：对新型农业经营主体家庭农场性质再认识——以皖南萍镇粮食家庭农场为例)

Rural China ◽  
2018 ◽  
Vol 15 (1) ◽  
pp. 81-125
Author(s):  
Lian Yu (余练)
Keyword(s):  
Policy Implementation ◽  
Family Farm ◽  
Grain Production ◽  
Family Farms ◽  
Social Functions ◽  
The Family ◽  
Peasant Household ◽  
New Type ◽  
High Level

Unlike capitalist farms or traditional peasant household organizations or commodified agriculture with the proletarianization of the peasantry as examined in classic studies, the so-called “family farm” 家庭农场 proposed by the CPC in its “No. 1 Document” is a characteristically Chinese concept that needs further examination and clarification. Based on long-term fieldwork, this study of family farms for grain production in Pingzhen in southern Anhui demonstrates that the rise of these family farms is a result of both policy implementation and response to the pressure of capital bankruptcy, but it is also rooted in the endogenous efforts of middle-stratum, managerial farmers. With the size of 100 to 200 mu and rare use of hired laborers, the family farm operates by relying on family members. Yet its high level of capitalization (as seen in the use of machinery and other forms of modern input) and hence high level of labor productivity permits its prevalence over small farmers as well as large capitalized farms. But the family farm is more than an economic unit; it also performs multiple social functions. Its development, therefore, has to be moderate, adaptive, and incremental. 从经典作家笔下的资本主义农场到农民家庭组织，再到商品化条件下农民的无产化，中央一号文件所提出的家庭农场是一个颇具中国特色的概念，因此对其性质需要进一步厘清。根据在皖南萍镇粮食家庭农场所做的长期调查，笔者发现家庭农场的形成既有政策和外力的推动，也有中农和职业农民内生性力量的承接。在当前核心家庭为主的家庭人口结构背景下，一二百亩的家庭农场，雇工比例极低。无长工、少短工，依靠家庭劳动力，成为家庭农场在劳动力方面的主要特征。家庭农场在保证土地生产率的同时，通过使用机械、扩大规模，增加了土地总产出，同时增加了自身收益。但家庭农场土地获得需要较高租金，固定资本投入也多，另外对种子、农药和化肥等生产要素投入积极。高资本和高劳动生产率构成家庭农场击败小农、中农和资本型农场的根本。不过，在社会效益上，小农和中农具有多方面功能，家庭农场的发展只能是适度的、局部的，只能循序渐进。

Study on Energy Materials with Analysis of China Green Recycling Family Farms Build Mode

2013 ◽  
Vol 848 ◽  
pp. 150-154
Author(s):  
Dan Lv
Keyword(s):  
Environmental Protection ◽  
Developed Countries ◽  
Family Farm ◽  
Family Farms ◽  
Energy Materials ◽  
Biomass Waste ◽  
Technology Service ◽  
The Family ◽  
New Energy ◽  
The Government

This paper adopt comparative analysis methods to study the family farms build mode which is emphasize on environmental protection and aimed at recyclable resources. It reported the present situation of the family farm in China, besides, it carried on comparison and analysis on the method that developed countries construct environmentally friendly farm. Conclusion: using biomass waste in agricultural process as new energy materials, applying biomass biochemical convert technology into family farm, realizing clean production, at the same time, the government should support the environmental protection enterprise, and increase investment in agricultural technology service and the agricultural informationization construction. Implement purpose of making full use of material, effective converting energy, having a significant economic and ecological environment benefit.

scholarly journals Exploitations Familiales de Production Agricole des Cercles de Niono et de Banamba (Mali): Caractérisation et Stratégies de Prise en Charge des Besoins en Rapport Avec L’intervention Pour le Développement Agricole et Rural

2017 ◽  
Vol 13 (13) ◽  
pp. 193
Author(s):  
Amadou Ndiaye ◽  
Yacouba Sangaré
Keyword(s):  
Rural Development ◽  
Agricultural Education ◽  
River Valley ◽  
Prise En Charge ◽  
Family Farm ◽  
Family Farms ◽  
Rural And Urban ◽  
The Family ◽  
Niger River ◽  
Peasant Family

The development of family farming is an important strategic option to support the food needs of the rural and urban populations. This is the reason it has been the subject of several studies which is based on characterization and typology to better orientate agricultural and rural development interventions. This study was conducted to characterize family farm in Mali and to determine the strategies to satisfy the country’s needs in rapport with the implementation of rural development. In doing this, field data were first collected in the family farms at Niono County (Niger River valley) and the Banamba County. After data collection, it was then analyzed in a systemic way. This analysis helps to characterize the family farm of Mali as a “Traditional peasant farm”. In Niono County, ‘peasant family farm’ which ensures its food self-sufficiency is centered on the production unit with an option of diversification. In Banamba County, “peasant family farm’ centered on unity of consumption develops food security strategy through pluri-activity. Thus, despite the intensity of government intervention, particularly in the area of Niger River Valley, malian “peasant family farmg” did not turn into “Modern family farm business”. In doing this, intervention for agricultural and rural development should move based on its strategies and practices from a sectorial approach to a systemic approach. This passage from the deterministic and holistic paradigm to the systemic and interactionist paradigm, should better redefine agricultural education and agricultural subsidy in relation with the structure of production.

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