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 Microjet generator for highly viscous fluids
13.02.2018 | Tokyo University of Agriculture and Technology

nachricht Sweet route to greater yields
08.02.2018 | Rothamsted Research

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: Demonstration of a single molecule piezoelectric effect

Breakthrough provides a new concept of the design of molecular motors, sensors and electricity generators at nanoscale

Researchers from the Institute of Organic Chemistry and Biochemistry of the CAS (IOCB Prague), Institute of Physics of the CAS (IP CAS) and Palacký University...

Im Focus: Hybrid optics bring color imaging using ultrathin metalenses into focus

For photographers and scientists, lenses are lifesavers. They reflect and refract light, making possible the imaging systems that drive discovery through the microscope and preserve history through cameras.

But today's glass-based lenses are bulky and resist miniaturization. Next-generation technologies, such as ultrathin cameras or tiny microscopes, require...

Im Focus: Stem cell divisions in the adult brain seen for the first time

Scientists from the University of Zurich have succeeded for the first time in tracking individual stem cells and their neuronal progeny over months within the intact adult brain. This study sheds light on how new neurons are produced throughout life.

The generation of new nerve cells was once thought to taper off at the end of embryonic development. However, recent research has shown that the adult brain...

Im Focus: Interference as a new method for cooling quantum devices

Theoretical physicists propose to use negative interference to control heat flow in quantum devices. Study published in Physical Review Letters

Quantum computer parts are sensitive and need to be cooled to very low temperatures. Their tiny size makes them particularly susceptible to a temperature...

Im Focus: Autonomous 3D scanner supports individual manufacturing processes

Let’s say the armrest is broken in your vintage car. As things stand, you would need a lot of luck and persistence to find the right spare part. But in the world of Industrie 4.0 and production with batch sizes of one, you can simply scan the armrest and print it out. This is made possible by the first ever 3D scanner capable of working autonomously and in real time. The autonomous scanning system will be on display at the Hannover Messe Preview on February 6 and at the Hannover Messe proper from April 23 to 27, 2018 (Hall 6, Booth A30).

Part of the charm of vintage cars is that they stopped making them long ago, so it is special when you do see one out on the roads. If something breaks or...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

VideoLinks
Industry & Economy
Event News

2nd International Conference on High Temperature Shape Memory Alloys (HTSMAs)

15.02.2018 | Event News

Aachen DC Grid Summit 2018

13.02.2018 | Event News

How Global Climate Policy Can Learn from the Energy Transition

12.02.2018 | Event News

 
Latest News

Fingerprints of quantum entanglement

16.02.2018 | Information Technology

'Living bandages': NUST MISIS scientists develop biocompatible anti-burn nanofibers

16.02.2018 | Health and Medicine

Hubble sees Neptune's mysterious shrinking storm

16.02.2018 | Physics and Astronomy

VideoLinks
Science & Research
Overview of more VideoLinks >>>