The landowner role in beginning farmer/rancher land access: exploring predictors of landowners' views of extra-familial farm transfer to a BFR

PurposeBeginning farmers and ranchers (BFRs) are more likely to access land through an unrelated landowner than through family. Thus, farm and ranch owners who might transfer their land or businesses out of family are potential sources of land access for BFRs and are the most frequent participants in incentive programs to facilitate land transfer to BFRs. To assist in identifying landowners who might transfer out of family, the paper aims to explore similarities and differences between landowners according to their expectations for intra-familial versus extra-familial farm transfer.Design/methodology/approachPairwise and regression analysis of USA Midwestern and Plains landowners' responses to an online survey (n = 322).FindingsLandowners who might transfer out of family were likely to need the proceeds from a land sale to finance their retirement. Landowners' financial needs interacted with their widespread interest in transferring to a BFR such that 97% of owners who expected extra-familial transfer wanted to transfer to a BFR. There were also statistical patterns around the size of owners' landholdings in relation to their transfer plans.Research limitations/implicationsThis exploratory inquiry suggests patterns for future research to examine, especially around landowners' juxtaposition of their retirement income and their interest in transferring to a BFR and how to align these priorities and values.Originality/valueBy exploring the characteristics of landowners who are the most likely to provide land access to BFRs, the authors begin to examine how to target these owners in program outreach. Patterns for further exploration point to landowners' financial needs in relation to their interest in helping a BFR to get started in agriculture.

Do the Subsidies Help the Young Farmers? The Case Study of the Czech Republic

To ensure the generation renewal in the European Union there are subsidies for setting up of young farmers’ businesses and the retirement scheme and top-up direct payments. In the Czech Republic are provided subsides to interest rates with preference of young farmers and intergenerational succession of the farm is tax-free. Together with other incentives, those factors shall facilitate enter of young people to the sector. The aim of the paper is to assess whether the policy measures help the young farmers with setting-up of their business. Based on the primary survey on 510 young Czech farmers the most motivating for enter the sector were tax relief on transfer of the holding and top-up payment for young farmers. The farmers without background considered as sufficiently motivating the top-up payments more often than those with certain background who acknowledged more the top-up subsidies. Possible way how to facilitate the enter to the sector could be to keep the tax relief on farm transfer, to combine the measures for retirement and setting up of young farmers and provide investment subsidies or financial instruments for start-up. Top-up payments, despite motivational according to the farmers, are criticized as inefficient.

An intergenerational farm transfer: when to start handing over the reins?

This case illustrates a challenging management decision faced by the family farm: when should they bring the younger generation to the farm full-time? Under consideration is a critical trade-off between the firm’s growth and transfer tax implications that drives the farm transfer decision. Industry practitioners and students are asked to use the results of the intergenerational farm transfer simulation model to evaluate this trade-off and provide an effective recommendation. The case can be used as part of succession/estate planning workshops attended by agricultural producers, farm managers, agricultural lenders, as well as in Master’s level courses in agricultural finance and farm management.

The optimation of farmers families' revenue the integration of Pasundan cattle and paddy farming in West Java

This research aimed to analyze the revenue optimization of farmer family with ratio of the most ideal farm scale in the integration of Pasundan cattle and paddy farm, and to analyze the most leveraging production factor towards the family revenue. The respondents were 94 farmers who had integrated farming between cattle and paddy. This research used survey method in four regions purposively based on Pasundan cattle centre. Data were analyzed with linear programming and production function of Cobb Douglass. The results were: (1) max Z = -(4,584,841x1+1574260 (x2+x3)) + (6,000,000jx1+4000000 (j x2 +j x3 )); this function consist of constraints: labour, transfer products between cattle and paddy farm, transfer fertilizer, capital of paddy farming in planting season-I and season-II. (2) Yintegration = 15,721,319.75 – 72.541 land – 1.317 fertilizer + 4.667 seeds + 487765.94 farminglabour + 6339170.199 cattlevalue – 935.559 feed + 162618.999 cattlelabour. There were some conclusions: First, the integration of Pasundan cattle and paddy farming produced the optimum family revenue/year, with ratio of 6.02 animal unit and 0.5 ha of paddy farming; Second, the production factor of agricultural land, labour, seeds, feed and capital (cattle) were explained (R2=87.66%) toward the integration revenue; Third, the variable which has the contribution to leverage the revenue was the capital of cattle (81.52%).