Farm investment and performance in the French (Brittany) dairy sector

Loic Levi (1) , Laure Latruffe (1) , Aude Ridier (1)

1 SMART-LERECO - Structures et Marché Agricoles, Ressources et Territoires

This paper investigates the link between farm investment and farm performance considering two types of farms that may have a different investment strategy: farms that are intensive in capital, and farms that have a low capital intensity. Panel data on specialized dairy farms of one sub-region of French Brittany (Ille-et-Vilaine) for the period 2005-2014 were used. Results from adjustment cost models indicate that farms tend to smooth their investments to limit adjustment cost and that farm performance has a negative impact on investment.

Mots clés: farms; investment; adjustment cost model; Brittany; dairy sector; panel data; reinvestment; cost template; fitting

Mots clés: ferme; investissement; modèle de coût; ajustement; donnée de panel; performance; secteur laitier; france; bretagne

Domaines: Sciences du Vivant [q-bio]

Loic Levi, Laure Latruffe, Aude Ridier. Farm investment and performance in the French (Brittany) dairy sector. 149. EAAE Seminar ‘Structural change in agri-food chains: new relations between farm sector, food industry and retail sector’, Institut National de Recherche Agronomique (INRA). UMR Structures et Marchés Agricoles, Ressources et Territoires (1302)., Oct 2016, Rennes, France. 25 p. ⟨hal-01512101⟩