Analysis of Farm Development in Dutch Agriculture and Horticulture

Abstract

This paper analysis the effects of farmer characteristics, farm structure and farm performance on farm renewal and farm growth. The data set used in this research consists of panel data from the Dutch Farm Accountancy Data Network of farms specialized in plant production extended with a data from survey among those farms. Probit models were used to determine the likelihood of the changes. Results show that the degree of mechanization increases the probability of farm growth and farm renewal. Family labour input and solvency have a negative impact on farm growth. Farm size is positively correlated with farm renewal. No indications of the influence of the life cycle have been found.