Factors affecting exit intentions from dairy farming in the Pampas region of Argentina

Abstract

This article examines the factors which explain exit from dairy farming in the Pampas region of Argentina. A representative sample of dairy farms was used, of which 12 % indicated their intention to exit in the next five years. High technical efficiency and the existence of a successor reduce the likelihood of exit dairy farming; while age of farmer, hired labor, and climate risk exposure are positively associated with exit intentions. The small dairy farms are more prone to exit than large ones, albeit with a smaller marginal effect.

Keywords

• stochastic frontier model
• binary choice model
• technical efficiency
• economic viability