Persistence of family farming, learning from its dynamics

Traditionally, the family farm has always been seen as a cornerstone of the agricultural production system. Given social, economic and political evidence (Calus, 2009), this organisational form might still continue to shape agricultural development. However, important changes in social and economic environment (e.g. industrialisation of agriculture, increased risk level and public vision on agriculture) become threats to the traditional model. A SWOT analysis of the family farms indicates the various intrinsic characteristics that make family farms resilient to changing conditions. Even in a changing economic and social landscape these aspects provide them with building blocks for creating new organisational forms or institutional arrangements. This paper shows these building blocks, and is only, prudentially, indicative for possible new institutional arrangements. Creativity may produce numerous outcomes from building blocks. Land tenure is only one example from past and present to show how institutions can deal with a potential threat, such as the large demand for land as production factor. Similar creativity is needed to the exploding capital demand in agriculture. One of the major challenges will be to provide family farms with low-costing capital. Food security and local community viability is the social price for this low cost supply.family farm, corporate farm, peasant, SWOT, Consumer/Household Economics,

The succession effect within management decisions of family farms

The preparation of the farm transfer or farm exit is a process that starts in the consolidation stage of the farm life cycle. In this stage, the decision to transfer the farm or not is taken and the farm management is adapted to this decision. The objective of this paper is to model the succession effect on farm management. The results show that the succession effect plays a role from the age of 45. An early designation of the successor gives an incentive to invest and to improve the management.farm transfer, succussor, farm life cycle, Farm Management,

The persistence of family farming : a review of explanatory socio-economic and historical factors

The family farm is a corner-institute of West European agriculture. This article highlights the main characteristics of the family farm and reviews both the socio-economic and political-institutional arguments used for the persistence of this structure in West European farming. At micro level, the socio-economic rationale behind the family farm states that economies of scale tend to increase the optimal farm size, but that this tendency is partly offset by the importance of transaction costs for monitoring labour results. Moreover, the flexibility of family labour, the accumulated human capital within the farming family and the ability to withstand hard (financial) times are factors in favour of the family farm. At macro level, the availability of food for the population has been one of the major concerns of policy makers. Different protectionist measures have been developed in order to secure enough food over time. Although the kind of farming system is not specified in these measures, the farm lobby has influenced the legislations in order to safeguard the current family farms. In the last decades the governmental concern has broadened due to environmental concerns. To reach these goals, the family farm approach is useful as family farms are essential for the kinds of landscape and rural social life. Taking into account the history of the family farm, the paper proposes different strategies, related to labour and capital allocation that can strengthen the survival of the family farm in the next decades

Persistence of family farming, learning from its dynamics

Traditionally, the family farm has always been seen as a cornerstone of the agricultural production system. Given social, economic and political evidence (Calus, 2009), this organisational form might still continue to shape agricultural development. However, important changes in social and economic environment (e.g. industrialisation of agriculture, increased risk level and public vision on agriculture) become threats to the traditional model. A SWOT analysis of the family farms indicates the various intrinsic characteristics that make family farms resilient to changing conditions. Even in a changing economic and social landscape these aspects provide them with building blocks for creating new organisational forms or institutional arrangements. This paper shows these building blocks, and is only, prudentially, indicative for possible new institutional arrangements. Creativity may produce numerous outcomes from building blocks. Land tenure is only one example from past and present to show how institutions can deal with a potential threat, such as the large demand for land as production factor. Similar creativity is needed to the exploding capital demand in agriculture. One of the major challenges will be to provide family farms with low-costing capital. Food security and local community viability is the social price for this low cost supply

Attitude of Flemish Farmers Towards Alternative Business Governance Structures

The Flemish agriculture is characterised by family farms in sole ownership. Alternative business governance structures occur in only 7 % of the cases, although they have advantages on fiscal, family and property grounds. The reason why partnerships don't work in Flemish agriculture are mainly situated at the knowledge and perception level of the farmers. The knowledge of the different structures exists only in a limited group of farmers. The subjective perception of governance structures enhances the limitation of transition to alternative business governance structures. Partnerships will be adapted by farmers who have a higher knowledge of alternative business governance structures and accept that the higher administration is compensated by a lower risk