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

17 Pages Posted: 19 May 2008

See all articles by Helen N. Pushkarskaya

Helen N. Pushkarskaya

University of Kentucky - Department of Agricultural Economics

Dmitry V. Vedenov

Texas A&M University - Department of Agricultural Economics

Date Written: April 2008

Abstract

The paper analyzes exit decision by tobacco farmers in the wake of tobacco buyout program in Kentucky. A data set collected through surveying Kentucky tobacco farmers is used to estimate a logit model representing the probability of exit as a function of farm-specific characteristics. The results indicate that decisions to stay or exit tobacco production are driven by different factors across age groups. In particular, the decisions of middle-age (46-64 years old) producers are found to be primarily affected by farm productivity factors, while the decisions of older (64+ years old) producers are much more sensitive to demographic and family characteristics, overall business climate and availability of alternative employment opportunities.

Keywords: exit decision, tobacco buyout, age groups

JEL Classification: J11, J14, J43

Suggested Citation

Pushkarskaya, Helen N. and Vedenov, Dmitry V., Farming Exit Decision by Age Group: Analysis of Tobacco Buyout Impact in Kentucky (April 2008). Available at SSRN: https://ssrn.com/abstract=1133927 or http://dx.doi.org/10.2139/ssrn.1133927

Helen N. Pushkarskaya (Contact Author)

University of Kentucky - Department of Agricultural Economics ( email )

Lexington, KY 40546
United States

Dmitry V. Vedenov

Texas A&M University - Department of Agricultural Economics ( email )

College Station, TX 77843
United States

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