The role of emotion and economics : A quantitative study of succession intentions in family farms

Abstract: Background: Over the last 30 years, Sweden's agricultural industry has changed significantly, with land prices rising and the number of agricultural firms steadily declining as they are replaced by larger farms. In the near future, there will be a considerable increase in the number of ownership transfers initiated in Sweden, this since in 2020 one-third of agricultural entrepreneurs with sole proprietorships were 65 or older. Purpose: The purpose of this study is twofold: (1) to identify factors influencing family farm succession intentions, as well as (2) to address the theoretical deficit within family farm research by establishing the two implicit economic and emotional paradigms with a theoretical foundation, and ultimately contribute towards determining which theoretical approach is best for explaining succession in family farms. Method: The researchers used a positivist research philosophy in conjunction with a deductive research approach. The quantitative technique was utilized to collect data, with the researchers employing a questionnaire. The questionnaire was distributed to Swedish farmers. Pearson correlation and binary logistic regression tests were used to further analyze the data. Conclusion: The findings show that family farm exposure is significant for intra-family succession in Swedish family farms; a factor derived from intergenerational solidarity theory. This implies that a theory from another domain is applicable to family farm research, and that the emotional perspective has a greater influence on farmer succession intentions than the economic perspective.