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Farming Exit Decision by Age Group: Analysis of Tobacco Buyout Impact in Kentucky

Published online by Cambridge University Press:  26 January 2015

Helen Pushkarskaya  and
Dmitry Vedenov
Helen Pushkarskaya
Affiliation:
Department of Agricultural Economics, University of Kentucky, Lexington, KY
Dmitry Vedenov
Affiliation:
Department of Agricultural Economics, Texas A&M University, College Station, TX
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Abstract

This article analyzes factors that affected the decision to exit tobacco production in the wake of the tobacco buyout program using the data collected through a survey of Kentucky tobacco farmers. Using the Heuristic logistic regression model, we find that the decision to exit tobacco growing was affected by efficiency considerations, availability of off-farm employment, and exit barriers. Availability of off-farm employment had the strongest effect on farmers younger than 46, while the effect of variables measuring efficiency and exit barriers seemed to be more uniform across age groups. Based on the results we suggest several policy interventions.

Keywords

age groupindustry exittobacco buyouttobacco farmingC25D21E24J00J11J24J43Q18R23
Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 41 , Issue 3 , December 2009 , pp. 653 - 662
Copyright
Copyright © Southern Agricultural Economics Association 2009

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