Intergenerational Succession on Farm Households: Evidence from Upper-Austria

This study examines household and farm characteristics affecting farm succession. Based on a farm household survey, three aspects of succession are analyzed in the paper: the probability of family succession, the likelihood of having a successor designated, and the timing of succession. Large and specialized farms are more likely to be transferred within the family and to have appointed a successor. The number of family members, as well as the experience of farm operator, is also significantly related to the succession behavior. The probabilities of succession, and of having a successor, first increase with age and then decline again. Furthermore, timing of succession is delayed as the farm holder ages, suggesting most farm operators’’ succession plans to be inconsistent over time. In addition, we find a significant
interrelationship between the different aspects of succession indicating that decisions on family succession, the designation of a successor, as well as the timing of succession, are not separable.