Multiple Generation Farm Households: What Determines Primacy in Management?

This study identifies factors that influence primacy between generations in the management structure of U.S. family farms. The paper fills an important gap in the farm succession literature by exploring succession (in management of the farm) as an incremental process. Estimation with cross-sectional data from the USDAERS’ Agricultural Resource Management Survey (ARMS) and a limited dependent variable model is used to explain the decision for older generation operators to retain primary farm management duties with a junior operator serving a secondary role. We identify a number of statistically significant attributes that explain variation in the elder farmer’s role (primary versus secondary) in management of the farm. Our results suggest that transferring primary operator status is more influenced by family members’ characteristics and less so by farm financial and operating characteristics.