Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Farmers’ Early Retirement Aid Secures the Future of Family Farming

05.02.2007
The exit decisions of elderly farmers are shaping the structural development of agriculture. In Finland the most important determinants that drive farmers to retire include the farmer’s and his or her spouse’s age, the number and age of potential successors, the size of the farm, its location and main produce, and the level of income available after retirement.

According to Minna Väre, Research Scientist at Agrifood Research Finland, who is currently working on her doctoral dissertation on the determinants of farmer retirement and farm succession, Finnish farms tend to be family businesses where the farmer’s goal is to eventually pass the farm on to the next generation.

– The early retirement aid is needed just to make succession a realistic possibility as well as to secure the future of farming. Around 50 percent of successions rely on the retirement aid. This is why the terms of the scheme as well as the benefits of the pension must be sufficiently tempting.

Succession More Likely on Large Farms

For her dissertation, Minna Väre applied statistical analyses to Agrifood Research Finland’s archives of returning holdings as well as six years’ worth of data from over 1,000 farms included in the records of the Finnish Farmers’ Social Insurance Institution. Her research material is unique in its extensiveness throughout the world.

The likelihood of succession increases with the farmer’s age and the size of the farm. The farmers’ early retirement aid, on the other hand, becomes less tempting as farmers approach the upper age limit of the scheme. The likelihood is smaller in northern Finland and on animal farms.

Väre investigated the length of time that farmers continued to work after reaching the age limit for qualifying for the aid. The results indicate that succession precedes the close down the farm. Farming couples take early retirement together, but one spouse drawing another kind of pension did not influence the other’s decision to exit farming.

Operating Environment in Agriculture Affects the Number of Successions

According to Väre, external income does not have a significant impact on the continuity of family farming in the long term. External income does, however, influence the timing of close down the farm and the input of farmers who stay in business.

Other determinants that affect the materialisation of successions include economic policy, producer prices and agricultural subsidies. – Since Finland joined the EU and producer prices dropped, the number of successions fell significantly, Väre explains.

The farmers’ early retirement aid is a pension awarded to farmers who exit farming. Retiring farmers exit farming either by selling or renting their farm to another farmer, or by means of succession. The scheme aims to improve farm structures and encourage successions. The year 2007 marks the beginning of a new programming period for the scheme.

Minna Väre was born in Nummi-Pusula, Finland, and graduated as a Master of Science in Agricultural Economics in 1997. She has been employed by the Economic Research unit of Agrifood Research Finland for ten years.

Minna Väre’s doctoral dissertation, “Determinants of farmer retirement and farm succession in Finland” will be reviewed on Friday 16 February 2007 at 12 noon at the Faculty of Agriculture and Forestry of the University of Helsinki. Väre will be defending her dissertation in Auditorium XII of the main building of the University of Helsinki, at 34 Unioninkatu. Her opponent will be Reija Lilja, Docent and Research Director at the Finnish Labour Institute for Economic Research, and Matti Ylätalo, Professor at the University of Helsinki, will be acting as her custos. The Dissertation falls within the field of Agricultural Economics. It will be published in the journal of Agrifood Research Reports.

Ulla Jauhiainen | alfa
Further information:
http://www.mtt.fi

More articles from Agricultural and Forestry Science:

nachricht New gene for atrazine resistance identified in waterhemp
24.02.2017 | University of Illinois College of Agricultural, Consumer and Environmental Sciences

nachricht Researchers discover a new link to fight billion-dollar threat to soybean production
14.02.2017 | University of Missouri-Columbia

All articles from Agricultural and Forestry Science >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Breakthrough with a chain of gold atoms

In the field of nanoscience, an international team of physicists with participants from Konstanz has achieved a breakthrough in understanding heat transport

In the field of nanoscience, an international team of physicists with participants from Konstanz has achieved a breakthrough in understanding heat transport

Im Focus: DNA repair: a new letter in the cell alphabet

Results reveal how discoveries may be hidden in scientific “blind spots”

Cells need to repair damaged DNA in our genes to prevent the development of cancer and other diseases. Our cells therefore activate and send “repair-proteins”...

Im Focus: Dresdner scientists print tomorrow’s world

The Fraunhofer IWS Dresden and Technische Universität Dresden inaugurated their jointly operated Center for Additive Manufacturing Dresden (AMCD) with a festive ceremony on February 7, 2017. Scientists from various disciplines perform research on materials, additive manufacturing processes and innovative technologies, which build up components in a layer by layer process. This technology opens up new horizons for component design and combinations of functions. For example during fabrication, electrical conductors and sensors are already able to be additively manufactured into components. They provide information about stress conditions of a product during operation.

The 3D-printing technology, or additive manufacturing as it is often called, has long made the step out of scientific research laboratories into industrial...

Im Focus: Mimicking nature's cellular architectures via 3-D printing

Research offers new level of control over the structure of 3-D printed materials

Nature does amazing things with limited design materials. Grass, for example, can support its own weight, resist strong wind loads, and recover after being...

Im Focus: Three Magnetic States for Each Hole

Nanometer-scale magnetic perforated grids could create new possibilities for computing. Together with international colleagues, scientists from the Helmholtz Zentrum Dresden-Rossendorf (HZDR) have shown how a cobalt grid can be reliably programmed at room temperature. In addition they discovered that for every hole ("antidot") three magnetic states can be configured. The results have been published in the journal "Scientific Reports".

Physicist Dr. Rantej Bali from the HZDR, together with scientists from Singapore and Australia, designed a special grid structure in a thin layer of cobalt in...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Booth and panel discussion – The Lindau Nobel Laureate Meetings at the AAAS 2017 Annual Meeting

13.02.2017 | Event News

Complex Loading versus Hidden Reserves

10.02.2017 | Event News

International Conference on Crystal Growth in Freiburg

09.02.2017 | Event News

 
Latest News

Stingless bees have their nests protected by soldiers

24.02.2017 | Life Sciences

New risk factors for anxiety disorders

24.02.2017 | Life Sciences

MWC 2017: 5G Capital Berlin

24.02.2017 | Trade Fair News

VideoLinks
B2B-VideoLinks
More VideoLinks >>>