Document Type
Article
Publication Date
2020
Abstract
As principal farm operators age, retirement and succession planning has become increasingly important to the U.S. agriculture industry. This study examined differences in the determinants of retirement preparation between farm and nonfarm households using the Survey of Consumer Finances. Factors such as risk preferences, financial capability, human capital, and other demographic characteristics of farmers that may play a role in their decision to plan for retirement were examined. Retirement planning was investigated by running three separate sets of logistic regressions on the overall sample, farm households, and nonfarm households. Likelihood of consulting a financial planner, expecting to leave a bequest, and household net worth were used as dependent variables. Results indicate some significant differences between farm and nonfarm households and highlight limitations in currently available data sets for studies such as this one. Implications for practitioners, researchers, and policymakers regarding farm family retirement and succession planning are discussed.
Publication Title
Journal of Applied Farm Economics
Volume
3
Issue
2
First Page
Article 5
DOI of Published Version
10.7771/2331-9151.1048
Recommended Citation
Worthy, Sheri L.; Mountain, Travis; Chatterjee, Swarn; Johnson, Carrie; Kiss, Elizabeth; O'Neill, Barbara; Saboe-Wounded Head, Lorna; and Gutter, Michael S. (2020) "Differences in the Determinants of Retirement Preparation between Farm and Nonfarm Households," Journal of Applied Farm Economics: Vol. 3 : Iss. 2, Article 5. DOI: 10.7771/2331-9151.1048 Available at: https://docs.lib.purdue.edu/jafe/vol3/iss2/5
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Comments
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