Heterogeneity in spatial interaction effects on farm survival and growth: evidence from Brittany
Résumé
Accounting for spatial interdependency is relevant when assessing policy changes in farming
because of potential interactions between farms. However, impacts of neighbouring farm
characteristics may vary according to farmers’ motivations. To identify specific impacts of
neighbouring farm size both on farm survival and growth, we use a mixture modelling
framework that allows accounting for heterogeneity in interactions between farms. An
application to a panel of farms in Brittany over 2003 to 2014 shows that interactions between
farms are rather competition for land than positive technology adoption spill overs, leading to
a negative impact of neighbouring farm size on the probability to survive. The results also show
that neighbouring farm size has a positive but indirect effect on farm growth through its impact
on farm survival. These results prove that more attention should be paid to heterogeneity in
spatial interactions in farming for a better understanding of farm size dynamics.
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