Explaining the Changing Institutional Organisation of Dutch Farms: The Role of Farmer's Attitude, Advisory Network and Structural Factors

Although the family farm remains the dominant organisational form for farms there are changes in the legal mode of organisation. Applying the new institutional economics and economic organisation theory the different organisation modes are explained, mainly in terms of control and income rights. Important factors are (limited) liability, risk-bearing costs, transaction costs, and residual control and income rights. In an empirical follow-up, based on a sample among 3100 farmers in the Netherlands, the impact of farmers' attitudes, farm advisory network, and structural variables on organisationchoice are analysed. Especially the financial advisors appear to play a significant role in the choice of organisation mode. Other factors are age, branche (horticulture, factory farming), and farm size.