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Larsson, Joel, 2024. Investment behaviour among young farmers; the probability to invest after receiving the Setting up aid. First cycle, G2E. Uppsala: SLU, Dept. of Economics



The lack of engagement from young people in agriculture presents a significant challenge to the future of the agricultural sector and of food security globally. Despite numerous studies focusing on the motivations and barriers for young individuals to enter farming, there's a gap in understanding their investment behaviour past entry. This study addresses this gap by empirically examining the factors influencing investment decisions among young Swedish farmers after they have received the Setting up aid, between the years 2001 and 2020. This study uses a dataset covering 4230 Swedish farmers aged 16 to 45 who all received the Setting up aid. The empirical analysis is based on logistic regressions and the purpose is to examine the factors that influence receivers of the Setting up aid to make additional investments. Results indicate that age is an important factor, suggesting a quadratic relationship and that the propensity to invest peaks at around age 30. Furthermore, individuals that received investment support in connection with the Setting up aid where associated with an increased probability of making future investments, but the magnitude of the initial investment support is indicated to decrease this probability.
This study contributes to the literature with empirical evidence on factors influencing young farmers investment behaviour, offering insights for policymakers to better design more effective supports for young farmers. Ultimately, by understanding and addressing the challenges facing young farmers, is crucial to ensure the sustainability and competitiveness of the agricultural sector in the face of evolving market conditions and environmental pressures.

Main title:Investment behaviour among young farmers; the probability to invest after receiving the Setting up aid
Authors:Larsson, Joel
Supervisor:Nilsson, Pia and Johansson, Eleanor
Examiner:Hart, Robert
Series:Examensarbete / SLU, Institutionen för ekonomi
Volume/Sequential designation:1615
Year of Publication:2024
Level and depth descriptor:First cycle, G2E
Student's programme affiliation:NK013 Agricultural Business and Economics, 180.0hp
Supervising department:(NL, NJ) > Dept. of Economics
Keywords:Young farmers, Investment behaviour, Ageing, Sweden
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Deposited On:04 Jul 2024 11:09
Metadata Last Modified:05 Jul 2024 01:02

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