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The role of farm performance on investment decisions: evidence from the French (Brittany) dairy sector

Abstract : The objective of this paper is to investigate the role of farm performance on investment decisions by estimating an adjustment cost model including explicitly farm performance on a panel sample of specialised dairy farms in Brittany (western France) between 2005 and 2014.Two types of farms are considered: one with high capital intensity and the other with low capital intensity. The results show that spreading investment over time is, on average, an optimal strategy to maintain performance in the presence of adjustment costs. It is the high price perspectives that give incentives to farmers to invest rather than their performance. In addition, the effect of performance on investment behaviour differs between both farm types.
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Conference papers
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https://hal.archives-ouvertes.fr/hal-01571255
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Submitted on : Tuesday, August 1, 2017 - 8:39:44 PM
Last modification on : Saturday, November 28, 2020 - 3:23:17 AM

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  • HAL Id : hal-01571255, version 1
  • PRODINRA : 398785

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Loic Levi, Laure Latruffe, Aude Ridier. The role of farm performance on investment decisions: evidence from the French (Brittany) dairy sector. 34. Journées de Microéconomie Appliquées (JMA), Groupe d'Analyse des Itinéraires et Niveaux Salariaux (GAINS). Le Mans, FRA. Université du Maine, FRA., Jun 2017, Le Mans, France. 20 p. ⟨hal-01571255⟩

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