Effect of agricultural policy on succession decisions of farm households

Ashok K. Mishra, Hisham S. El-Osta

Research output: Contribution to journalArticlepeer-review

59 Scopus citations


Policymakers, economists, and researchers have recently been interested in assessing the impact of farm program payments on the growth and survival of farm businesses. Planning for succession is an integral part of managing a farm business. This study uses farm-level data to investigate the impact of government farm policy and farm growth on both succession decisions and the likelihood of intra-family transfers of the farm business. Results indicate that succession decisions are significantly influenced by government farm policy, farm wealth, age, and educational attainment of current farm operators. Results show that off-farm work by operators and spouses and regional location are positively correlated with non-family farm succession decisions. On the other hand, farm ownership, educational attainment, and marital status of the operator increase the likelihood of family-based succession decisions. However, in the presence of retirement income from other sources such as pension, parents are less likely to have a family successor.

Original languageEnglish (US)
Pages (from-to)285-307
Number of pages23
JournalReview of Economics of the Household
Issue number3
StatePublished - 2008
Externally publishedYes


  • Agricultural Resource Management Survey
  • Agricultural policy
  • Conditional logit model
  • Farm growth
  • Intergenerational succession
  • Off-farm labor participation

ASJC Scopus subject areas

  • Social Sciences (miscellaneous)
  • Economics and Econometrics


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